Kikkoman (2801) Upgrade to Overweight; offset cost growth via pricing power; ROE to improve from FY2027

Research evidence excerpt

Kikkoman (2801) Upgrade to Overweight; offset cost growth via pricing power; ROE to improve from FY2027

J P M O R G A N Asia Pacific Equity Research

09 June 2026

Correction (first published 08 June 2026) (See disclosures for details)

Kikkoman (2801) ▲Overweight

Previous: Neutral

Upgrade to Overweight; offset cost growth via pricing 2801.T, 2801 JP

Price (08 Jun 26):¥1,464

power; ROE to improve from FY2027 Price Target (Dec-26):¥1,950

We raise our December 2026 price target for Kikkoman to ¥1,950 (previously Japan Equity Research

¥1,550) and upgrade our rating to Overweight from Neutral. We expect ROE to

Food, Beverage, and Tobacco

resume growth from FY2027, one year sooner than previously expected, due to

progress in offsetting the impact of cost inflation and higher fixed costs from the Satoshi Fujiwara AC

start-up of a new US plant by raising prices in domestic and overseas markets. Over (81-3) 6736-8652

satoshi.fujiwara@jpmorgan.com

the past year, the stock has traded at a P/E of around 20x based on one-year forward

Hideto Takahashi

Bloomberg consensus estimates, but we believe the valuation range could increase

(81-3) 6736-8638

due to clearer visibility for ROE improvement. Our new ¥1,950 price target is hideto.takahashi@jpmorgan.com

based on a fair-value P/E of 25x on our EPS estimate in FY2027, when we expect JPMorgan Securities Japan Co., Ltd.

a full-year contribution from price hikes (our prior price target was based on a P/E

of 23x on our FY2026 EPS estimate).

Style Exposure

• Revising up our earnings forecasts: We raise our business profit estimates,

reflecting a boost from price hikes in Japan and overseas while factoring in

higher costs from the Middle East conflict. We forecast ¥84.6 billion in