Morgan Stanley raises Japanese cement sector rating

Morgan Stanley raises Japanese cement sector rating
Published: 08 February 2012


Morgan Stanley MUFJ Securities has set the Japanese cement sector’s rating to “attractive” – the highest ranking on its three-tier scale.

According to a Nikkei report, analysts at the brokerage wrote that profits at cement firms will rise in line with their on-going efforts to cut costs. Higher prices, an increasing balanced supply and demand ratio and rising demand related to earthquake reconstruction efforts will also support the industry.

The house also said that investors have undervalued shares of Sumitomo Osaka Cement and Taiheiyo Cement, despite expectations that their earnings will improve in fiscal 2012.