1020 GMT - Shiseido should be able to meet its profit margin target despite non-cash impairments weighing on its bottom line, Morningstar director Lorraine Tan says in a note. Cost-cutting initiatives should continue to drive profitability, allowing Shiseido to hit its mid-cycle core operating margin target of 10%. "The strategy to focus on key brands and divest non-performing ones is progressing well, and should support this [drive]." Shiseido's fragrance brands are also gaining traction faster than expected and should remain a major contributor to midterm sales, says Tan. Morningstar maintains its fair value estimate at Y2,950, seeing shares as slightly undervalued with a 15% upside as investors weigh the company's restructuring efforts against U.S. and China sales headwinds. Shares closed at Y2,701.50.(jason.chau@wsj.com)

(END) Dow Jones Newswires

November 12, 2025 05:21 ET (10:21 GMT)

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