Wire & Cable: Share Price Correction, but Fundamentals Strong

研报英文原文证据摘录

Wire & Cable: Share Price Correction, but Fundamentals Strong

Idea

June 11, 2026 03:33 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MWire & Cable | Japan Yu Shirakawa

Equity Analyst

Share Price Correction, but Yu.Shirakawa@morganstanleymufg.com +81 3 6836-5432

Fundamentals Strong

Uncertainty remains over the macro environment and slowing

Wire & Cable

share price momentum, but investment in AI data centers (DCs) Japan

Industry View Attractive

by hyperscalers has picked up in 2026. We raise PT for SEI,

What’s Changed

lower PT for Fujikura, stay OW on Furukawa.

Sumitomo Electric (5802.T) From To

Price Target ¥11,000 ¥14,500

Fundamentals for DC-related products remain strong; maintain Attractive

industry view: Despite lingering macro uncertainties and faltering share price Fujikura (5803.T) From To

Price Target ¥5,200 ¥4,700

momentum (incl. Middle East tensions, recent correction in AI/semis stocks),

continued robust AI DC investment remains a tailwind. In 2026, we expect high 2-

digit growth in hyperscaler capex (87% YoY). We also expect broader adoption of

products for CPO ahead, and think increased mix of high-value-added products

together with new product ramp-ups are likely earnings drivers for W&C names.

Meanwhile, supply/demand in optical products remains tight. Although price hikes

could drive margin expansion, no material margin improvement attributable to price

increases has been confirmed at this stage. Accordingly, our forecasts are based on

conservative assumptions of related margin improvement. That said, materialization

of improvement would suggest earnings upside. Share prices are currently trending

lower as a pull back from prior rapid gains and due to receding expectations for US