2015 All-Japan Research Team: Plant Engineering & Shipbuilding, No. 3: Ryo Tazaki
Institutional Investor Research is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

2015 All-Japan Research Team: Plant Engineering & Shipbuilding, No. 3: Ryo Tazaki

2015-04-tom-johnson-all-japan-research-team-ryo-tazaki-thumb.jpg

Reclaiming third place after a year at runner-up is Ryo Tazaki, 47.

< The 2015 All-Japan Research Team

2015-04-tom-johnson-all-japan-research-team-ryo-tazaki.jpg

Ryo Tazaki

Nomura

First-place appearances: 0


Total appearances: 4


Team debut: 2012


Reclaiming third place after a year at runner-up is Ryo Tazaki, 47. “Like all of Nomura’s best analysts,” one fund manager observes, “he concentrates on fundamental research. It’s very basic and very important — but now, for some reason, there aren’t as many sell-side analysts who do classic work.” Osaka-based Kubota Corp., which makes hay loaders, tractors and other agricultural equipment, as well as construction machinery, is one of the researcher’s preferred names. Solid demand from Asia and the U.S. is catalyzing sales gains, which also get a boost from the depreciating yen, he notes. Thailand, where turnover grew by roughly 25 percent in the quarter through December, is the linchpin in Asia, Tazaki reports, “owing to the completion of adjustments to farm machinery inventory there, and efforts to expand sales of dry-field tractors to neighboring countries, including Cambodia and Myanmar.” In addition, subsidies for combine harvesters resumed in China in January. Despite some weakness in the domestic market, these offsetting factors should propel operating profit growth by as much as 15 percent in the fiscal year that begins next March, he reckons. Finally, Kubota management recently announced a buyback plan equivalent to 0.6 percent of outstanding shares. Tazaki has assigned the stock a price objective of ¥2,290, which implies a 16.6 percent upside to its trading level late last month.



Gift this article