Kao's Beauty Care Products Should Enjoy Global Growth on Innovation, Affordability

Dow Jones

09/03

0635 GMT - Kao's beauty care products should enjoy global growth on innovation and affordability, SMBC Nikko Securities' Shima Yamanaka says in a research report. Its 1H earnings confirmed sustained strength in domestic fabric care, profit growth driven by cosmetics in Japan and Asia, and sales growth in health and beauty care in the Americas, the analyst says. The brokerage likes the way the Japanese chemical and cosmetics company is winning over global consumers with a personal care lineup that features advanced product technology at affordable prices. The brokerage raises the stock's target price to 4,300 yen from Y4,050 with an unchanged outperform rating. Shares closed 0.9% lower at Y3,551.

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