By Ko Terada

Yomiuri Shimbun Staff Writer

Panasonic Holdings Corp. shares closed at 2,351 yen on Monday, up 4.9% from the previous weekend, marking its highest level since the Lehman Shock in September 2008.

The surge is seen as being driven by the market's positive reception of the company's ongoing structural reforms, as well as such strategies as the expansion of its sales of storage battery systems for data centers.

Panasonic Holdings announced its structural reform plan in February last year, and began considerations on low-profitability businesses, including whether to withdraw from or sell them. It announced plans in May to cut approximately 10,000 jobs in Japan and overseas. In November, it decided to sell an 80% stake in its housing equipment subsidiary to YKK Corp.

At a December investor briefing, the company presented a target of increasing its sales of battery storage systems for data centers to 800 billion yen by around fiscal 2028, about three times the current level. Against the backdrop of growing data center demand globally, the announcement became the driving force behind the sharp rise in its previously sluggish stock price.

SMBC Nikko Securities Inc., in a report released on Jan. 9, raised its target share price for Panasonic Holdings from 2,200 yen to 3,000 yen. In a positive assessment, the report said, "While its (Panasonic Holdings') future vision differs from those of Sony Group Corp. and Hitachi Ltd., the discount (undervaluation of its shares) is expected to be resolved."

However, there are also concerns about Panasonic Holdings' outlook.

Its series of structural reforms include plans to accelerate the "China shift" in its kitchen appliance and other businesses. The company intends to leverage China's domestic supply chain to utilize low-cost parts and materials. However, deteriorating Japan-China relations are widely expected to impact the plan, according to a Panasonic Holdings executive.

The company is also experiencing challenges in its battery business for electric vehicles, a key focus area, and its software-related businesses. Questions remain as to whether it can establish sustainable pillars of growth.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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January 20, 2026 02:19 ET (07:19 GMT)

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