Japan stocks traded higher on Tuesday, with sectors like Paper & Pulp, Railway & Bus and Real Estate leading the way. The Nikkei 225 was the best-performing index among all Asian stocks and it gained 4.88% at the close of the trading session. Yamaha Motor was one of the stocks that gained the most, with shares jumping more than 10%.
At the end of May, Yamaha Motor reported first-quarter earnings that could not meet analysts’ expectations. The Japanese company registered quarterly earnings of $0.25 per share, while the predictions were for earnings of $0.48 per share. Meanwhile, the manufacturer reported earnings of $0.75 per share the previous year.
Despite the devastating coronavirus pandemic and global lockdowns, in May, Yamaha Motor managed to reopen about 50% of its factory locations. The company follows Government guidelines for social distancing so that it can welcome customers at its shops.
The reason why many Nikkei 225 companies gained on Tuesday is the weaker Japanese yen. As many manufacturers rely on exports for their incomes, they benefit when the Japanese yen is weak. Since the yen was slightly weaker than the US dollar on Tuesday, companies like Yamaha Motor saw a surge in their shares.
After China announced that it had taken strict measures against the spread of the coronavirus, the fear of a second pandemic wave subsided. That also contributed to a jump in Japan stocks in Tuesday trading.
The stocks on the rise were 3407, while the declining ones were 221. Meanwhile, 61 stocks did not change after the trading session on Tuesday. The Nikkei Volatility remained the same to trade at 39.59, which is a new 1-month high record.
Analyst stock price forecast and recommendation
According to MarketBeat, a 12-month price target forecast for Yamaha Motor Co. Ltd. shows that analysts have an average price target of 1,736.7, with a high estimate of 2,570.0 and a low estimate of 1,200.0. The company has a potential upside of 0.62% from its last price.
The same media also provides the recommendations of 15 analysts who have a consensus rank of “Neutral” for the Yamaha Motor Co. Ltd. stock. Out of all polled analysts, 10 ranked the stock as “Neutral”, 4 as “Buy” and 1 – as “Sell”.