Japan’s Kioxia Holdings Corporation (285A) has fallen 45% in a month, but Wall Street analysts are still expecting another 118% rise from now.
This difference raises an obvious question. Why do so many experts keep returning the stock that fell so quickly?
Bull Case Investigators Stick Up
Kioxia’s divisions fell to a the lowest is ¥52,110 Last Friday, but they may bounce back a bit, about 9%, to ¥55,860 on Tuesday, July 21. However, this still leaves the stock down 42% for the month, for now.
This is important because Kioxia hit a high of ¥111,250 on June 22, making it short. Japan’s largest company by going through the market, going beyond Toyota.
Despite this success, Kazuyoshi Saito, chief analyst at Iwai Cosmo Securities, is still working. the target was ¥132,000.
“The requirements haven’t changed at all,” Saito said.
He says the AI-driven story remains strong. He expects the shares to bounce back after the tech sell-off.
At this timeNomura Securities raised its price target from ¥115,000 to ¥126,000 last week. Huaxing Research raised its target above ¥100,000 at the same time. The deal near ¥121,959 represents about 118% over Tuesday’s close.
Why Bulls Look Different From Charts
Kioxia’s chart does not look like a stock that is about to make 118%. The boom-to-bust stock volatility has taken away most of this year’s gains.
Some experts say assembly memory stock it is very fast, not just stable.
In contrast, Ikio Mitsuishi, portfolio manager at Aizu Securities, he hopes Kioxia will be weak until the end of August. He said investors can avoid making one-store returns too quickly. Many can convert to cheaper, less expensive names instead.
The Continuous Model of Kioxia
Kioxia isn’t the only Asian chipmaker rocking this hard. SK Hynix’s Nasdaq listed shares it rose more than 20% in a day, then dropped two days later.
A bigger one chip selloff in Japan has wiped trillions of yen off the stock market this month.
The real test of Kioxia cattle is not the price you want. It’s like the chip-stock volatility in Asia is settling in before the receiving season.
A note Kioxia Falls 45% In A Month: Why Are Analysts Still So Stupid? appeared for the first time BeInCrypto.
