Komatsu, JP3304200003

Komatsu stock gets a JPY 9,000 Goldman Sachs target

Published on 10/07/2026 at 04:13 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q1 sales reached JPY 1,043.1 billion, up 14.7 percent year over year for the period ended June 30, 2026. FY2027 guidance targets JPY 4,302 billion in sales.

Komatsu, JP3304200003, Illustration mit AI erstellt.

Komatsu stock was trading at JPY 7,835 on the Tokyo Stock Exchange on October 7, 2026 at 10:57 a.m. JST, up 0.75 percent from the prior close. The immediate catalyst is Goldman Sachs, which upgraded Komatsu to Buy from Neutral and raised its price target from JPY 6,700 to JPY 9,000 on October 5, 2026, according to Investing.com.

Goldman changes the valuation case

Goldman Sachs tied the upgrade to an AI capital-expenditure cycle and cited stronger growth and stability in U.S. construction machinery and mining equipment. The new target is 34.1 percent above the JPY 7,835 intraday price, a gap that places the broker's view above the current Tokyo quotation.

The market move comes after a sharp re-rating in the machinery name. The stock's October 7 intraday range was JPY 7,799 to JPY 7,898, while its 52-week range stood at JPY 4,914 to JPY 7,980, leaving the quoted price 1.8 percent below the yearly high.

Q1 sales rose 14.7 percent

Komatsu's latest reported quarter covered the three months ended June 30, 2026. Sales reached JPY 1,043.1 billion, up 14.7 percent from JPY 909.5 billion in the comparable period, while operating income rose 8.0 percent to JPY 151.6 billion, according to Beikabu Map.

The operating margin moved to 14.5 percent from 15.4 percent a year earlier. That contrast matters: demand produced double-digit sales growth, but the lower margin shows why the full-year profit outlook remains the central test for the valuation.

Guidance points to slower profit growth

For the fiscal year ending March 31, 2027, Komatsu guides to sales of JPY 4,302 billion, up 4.1 percent, and operating income of JPY 555 billion, down 2.2 percent. The same July 29, 2026 update raised the sales forecast by JPY 184 billion and the operating-income forecast by JPY 47 billion, according to Beikabu Map.

The wider analyst picture is more measured. The consensus was Hold among 12 analysts, with an average target of JPY 6,902.73 and a last-close reference of JPY 7,012 on September 18, 2026, according to MarketScreener. The Goldman target therefore stands above the published consensus average, while the current quote sits above that average.

Komatsu stock holds near its yearly high

Komatsu stock was last at JPY 7,835 on the Tokyo Stock Exchange on October 7, 2026 at 10:57 a.m. JST. Its JPY 7.0 trillion market capitalization and JPY 1,042,200 trading volume underline the scale of the listed machinery group.