TDK downgraded to "equal weight" - update

12/22/05 - Morgan Stanley

LONDON, December 22 (newratings.com) - Analysts at Morgan Stanley downgrade TDK Corp (TDK) from "overweight" to "equal weight." The target price has been reduced from ¥10,000 to ¥9,400.

In a research note published this morning, the analysts mention that the company is likely to be adversely impacted by Seagate’s proposed acquisition of Maxtor. Maxtor, TDK’s largest HDD head customer, may begin in-house production of HDD heads, following the merger, the analysts say. The operating income estimates for FY05, FY06 and FY07 have been revised to ¥67.6 billion, ¥85.9 billion and ¥81.1 billion, respectively.