2015 All-Japan Research Team: Transportation, No. 2: Yasuhito Tsuchiya
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2015 All-Japan Research Team: Transportation, No. 2: Yasuhito Tsuchiya

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After a year in first place, Bank of America Merrill Lynch’s Yasuhito Tsuchiya slips to No. 2, the position he most recently held in 2012.

< The 2015 All-Japan Research Team

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Yasuhito Tsuchiya

Bank of America Merrill Lynch

First-place appearances: 1


Total appearances: 6


Analyst debut: 2008


After a year in first place, Bank of America Merrill Lynch’s Yasuhito Tsuchiya slips to No. 2, the position he most recently held in 2012. Even so, the 43-year-old wins investor plaudits for his expertise and frequent updates. He is “an experienced, seasoned analyst who knows everything there is to know about passenger travel,” one backer cheers. Tsuchiya’s top picks include Japan Airlines Co., which is headquartered in Tokyo and provides courier, passenger and travel agency services. Lower fuel prices have slashed a key expense from the carrier’s cost structure, he explains, which has enabled it to reduce fares on its international tourist traffic. Adding to the appeal of JAL is management’s track record in delivering strong earnings, he notes. Moreover, in January the operator earned its first credit rating — A-, from both the Japan Credit Rating Agency and Rating and Investment Information — since emerging from bankruptcy protection in March 2011, which improves its financing options. Finally, the valuation is cheap compared with those of domestic rivals, says the researcher, who assigns the stock a price target of ¥4,800. That implies a 26.1 percent upside to the shares’ value in late March. He also recommends that investors buy Keisei Electric Railway Co., largely based on expectations for continued demand growth for Keisei’s high-speed train service between downtown Tokyo and Narita Airport. In addition, the Chiba-based company’s financial picture is improving as major capital investments wind down, says Tsuchiya. His price objective for the shares is ¥1,730; they were trading at ¥1,580 late last month.



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