Tokio Marine Holdings (TKOMF – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Ken Shih from DBS maintained a Buy rating on the stock and has a Yen6,200.00 price target.
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Ken Shih has given his Buy rating due to a combination of factors that highlight Tokio Marine Holdings’ strong strategic positioning and growth potential. The company has effectively leveraged its international specialty insurance franchise, which has been bolstered by strategic mergers and acquisitions since 2008. This has allowed Tokio Marine to capitalize on both domestic and international markets, with a balanced profit split that positions it well for continued growth.
Furthermore, Tokio Marine is expected to see a significant increase in net income, projected to rise by 46% year-over-year in FY24F, surpassing its peers. This growth is driven by improved underwriting performance and capital gains from the sale of non-core business operations. Additionally, the company’s medium-term plan includes accelerated dividend per share growth and share buybacks, enhancing shareholder returns. With a projected EPS organic CAGR of 8% and a total CAGR of 16% by 2026, Tokio Marine is well-positioned to maintain a strong ROE and deliver consistent value to shareholders.