Precision Stocks: Apr-Jun 2026 Outlook: Japan | Precision Equipment

Research evidence excerpt

Precision Stocks: Apr-Jun 2026 Outlook: Japan | Precision Equipment

Japan | Precision Equipment EquityJulyResearch14, 2026

KEY STOCKS FEATURED INCLUDE:Precision Stocks: Apr-Jun 2026 Outlook

We review earnings outlooks for 17 precision equipment stocks ahead TICKER RATING PRICE TARGET

of Apr-Jun 2026 results. While earnings proceeded roughly on track with 6448 JP BUY ¥4,500

guidance, including support from yen depreciation during Apr-Jun, there 7751 JP HOLD ¥4,300

continues to be headwind risk for future earnings. We recommend HOYA, 8060 JP BUY ¥4,500

Horiba, and Citizen Watch ahead of Apr-Jun results. Although Seiko Epson 7762 JP BUY ¥3,200

is likely to realize healthy 1Q earnings too, its share price has risen, and we 4901 JP BUY ¥4,500

downgrade it to Hold.

This report updates earnings outlooks for eight printing and watch stocks and nine KEY CHANGES INCLUDE:

industrial stocks within our precision and SPE stock coverage ahead of Apr-Jun (1Q) results

TICKER RATING PRICE TARGET

announcements. Refer to our report issued on June 23 for the review of SPE stocks. Our

outlook uses forex assumptions of ¥155/US$ and ¥180/Euro in FY2026, ¥150/US$ and ¥170/ 6448 JP BUY ¥4,500 (¥4,000)

Euro in FY2027, and ¥145/US$ and ¥165/Euro in FY2028. Average rates in Apr-Jun 2026 were 7751 JP HOLD ¥4,300 (¥4,100)

¥160/US$ and ¥185/Euro. Since company guidance assumptions were roughly ¥150/US$ and 7762 JP BUY ¥3,200 (¥2,720)

¥175/Euro, forex rates are boosting recent earnings.

4901 JP BUY ¥4,500 (¥4,300)

Concerns about impact of higher costs in FY2026: We expect impacts on earnings in

FY2026 from an upswing in semiconductor memory prices, higher raw material costs linked

to increases in the crude oil price, and increases in personnel costs. However, we think the