The Point for Asia Pacific

Research evidence excerpt

The Point for Asia Pacific

Point |

Tuesday, 30 June 2026

Top Call | Country Top Calls

Top Call

Murata (6981.T) - Upgrading to Buy - AI servers fuel acceleration in MLCC profit

growth

We upgrade Murata to Buy from Neutral and raise our target price to ¥15,000 from

¥3,900, reflecting revisions to our earnings forecasts, changes to our valuation

assumptions (risk premium down from 4% to 3%), and a shift in our base year

(from FY3/28 to FY3/29). We raise our earnings forecasts significantly, reflecting

our increased AI server unit outlook and favorable MLCC pricing in the AI server

space. While we do not currently anticipate company-led price revisions for

general-purpose products, we note that such revisions would create additional

upside.

Takayuki Naito

Japan Auto Parts & Equipment - Tire sector: upgrading our sector stance to

bullish

We upgrade our sector stance on tires from neutral to bullish. Lower crude oil

prices bring benefits, both in lower raw material costs and the stability of tire

demand. While we see a risk that natural rubber prices remain elevated due to El

Niño concerns, we believe firms can absorb this through price pass-throughs. Our

weekly price survey shows multiple Tier 1 tire makers implementing price hikes in

the US. Near-term earnings deterioration from higher raw materials is already

priced in, setting the stage for a return to the narrative of stable growth and

expansion in shareholder returns.

Arifumi Yoshida

Australia Real Estate - Rates peaking, budget tailwinds. Time to buy Australian

Residential Developers. SGP/MGR upgrade to Buy

Australian residential REITs have sold off 23–33% since October 2025, pricing in a

tough housing cycle driven by 75bps of RBA rate hikes (with one more likely) and