Ibiden "overweight," target price raised

11/17/05 - Morgan Stanley

LONDON, November 17 (newratings.com) - Analysts at Morgan Stanley maintain their "overweight" rating on Ibiden (IBI), while raising their estimates for the company. The target price has been raised from ¥3,900 to ¥6,300.

In a research note published this morning, the analysts mention that the company’s competitive position in the market is likely to improve going forward on account of accelerated depreciation. The EPS estimates for FY05 and FY06 have been raised by about 20%, to reflect favourable currency effects, a declining tax rate and a revised profit outlook for the DPF segment.