Mitsukoshi "equal weight"

12/30/04 - Morgan Stanley

LONDON, December 30 (newratings.com) - Analysts at Morgan Stanley maintain their "equal weight" rating on Mitsukoshi Ltd (MKS). The target price is set to ¥480.

In a research note published yesterday, the analysts mention that Mitsukoshi reported a 3.2% y/y decline in its consolidated sales for the first three quarters of the current financial year. The company’s recurring profits are expected to remain unaffected by weak sales in the near future, the analysts add. Mitsukoshi’s Taiwan unit would continue to drive the company’s overall profitability in the near future, Morgan Stanley believes. The analysts also expect the company’s growth to be driven in the near future by the restructuring of its subsidiaries and the opening of the Nagoya specialty store next year.