Nomura Trading Up After Inaccurate Story Published; Real Upgrade Happened Two Weeks Ago

Loading...
Loading...
Shares of
Nomura Holdings, Inc.
NMR
surged more than five percent on Monday and established a new 52-week high of $7.23. At a time when financial related stocks are trading lower as a result of Greece's referendum result, the move higher in Nomura's stock warranted a second look. One possible explanation for the move higher was a
report by "Insider Trading Report" who stated that shares of the Japan-based global investment and financial services business received an upgrade to Equal-weight from Underperform by analysts at Barclays. The news report is actually incorrect. Shares of Nomura were upgraded on June 23 by Barclay's Japan-based analyst Azuma Ohno. "Core business earnings have been stable, mainly led by the retail business, and we expect expansion of investment-trust fees and wrap-account income to strengthen consolidated profit absent a sudden change in the market environment," Ohno wrote. "The wrap-account balance is growing at a faster pace than at Daiwa [Japan's second largest securities brokerage after Nomura], and we anticipate a large contribution by wrap-related income to profit growth in the retail business." Ohno also noted that within Nomura's wholesale division, overseas income has improved to breakeven level and is expected to deliver a profit from overseas business in the third quarter 2016, including "anticipated income from a major IPO." Ohno also stated that Nomura's investors could expect dividend increases that correspond to the company's growing profit trend. In addition, the company could institute a buyback program if profit "overshoots."
Loading...
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorNewsAnalyst RatingsAzuma OhnoBarclaysDaiwaInsider Trading ReportNomura
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...