Mitsubishi UFJ Financial - ADS (MTU) - Bull of the Day

By Zacks.com,  July 16, 2012, 01:00:01 AM EDT

We are upgrading our recommendation on Mitsubishi UFJ Financial - ADS ( MTU ) to Outperform based on the company's impressive earnings results for the fiscal year ended March 31, 2012. The company's net income increased 68% year over year. The growth was primarily aided by lower G&A expenses and a significant decline in consolidated credit costs.

Improved loans and deposits were also among the positives (reduced gross profits and net interest income were the headwinds). The company's strong business model, diversified product mix and lower credit costs are expected to support its bottom line going forward.

Our six-month target price of $5.50 per ADS equates to about 9.3x the Zacks Consensus Estimate for fiscal year 2013. This target price implies an expected total return of 12% over that period. This is consistent with our long-term Outperform recommendation on the ADSs.
 
MITSUBISHI-UFJ (MTU): Free Stock Analysis Report
 
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Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: MTU



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