Morgan Stanley downgrades Hakuhodo DY stock to Sell at JPY 1,100.00

Published on 10/07/2026 at 05:38 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-quarter revenue was JPY 176.22 billion versus JPY 183.85 billion forecast. Hakuhodo DY stock has eight ratings and a JPY 1,222.50 average target.

Hakuhodo DY, JP3766550002, Illustration mit AI erstellt.

Hakuhodo DY stock (ISIN JP3766550002) faces a cautious analyst signal after Morgan Stanley downgraded the company to Sell and set a JPY 1,100.00 price target on September 11, 2026, according to Markets Insider. The rating change arrived as the company entered fiscal 2027 with weaker quarterly revenue and a net loss.

Revenue missed the first forecast

In the first quarter of fiscal 2027, revenue was JPY 176.22 billion, below the JPY 183.85 billion forecast, according to MarketScreener. The shortfall was 4.15 percent versus that forecast, calculated from the two figures reported for the quarter.

The same quarter produced a net loss of JPY 1.76 billion against a JPY 2.44 billion forecast profit, while earnings per share were minus JPY 4.90. The contrast matters because the revenue miss was accompanied by a reversal in quarterly profitability rather than a smaller profit increase.

Analyst targets point lower

MarketScreener lists eight analyst ratings, with an average target of JPY 1,222.50, according to its consensus page. That target is 5.01 percent below the JPY 1,287.00 primary-exchange price available for October 7, 2026, calculated in yen from the two values.

Morgan Stanley's JPY 1,100.00 target is 14.53 percent below the same JPY 1,287.00 reference price. The difference between the average target and Morgan Stanley's target shows that the Sell call is materially more cautious than the broader target collection.

Market value and business scale

Hakuhodo DY Holdings was valued at JPY 462.1 billion on October 7, 2026, while its 52-week range was JPY 973.50 to JPY 1,405.00. The share price therefore stood 8.40 percent below the yearly high and 32.16 percent above the yearly low.

The Tokyo-listed advertising group provides marketing, digital, media, brand-building and entertainment services in Japan and international markets. Its fiscal 2026 revenue was JPY 861.0 billion and operating profit was JPY 44.7 billion, according to Yuhodb. Revenue declined 9.68 percent from JPY 953.3 billion in fiscal 2025, while operating profit increased 18.88 percent from JPY 37.6 billion.

Stock trades below its prior close

On October 7, 2026 at 11:30 a.m. JST, Hakuhodo DY Holdings was at JPY 1,287.00 on the Tokyo Stock Exchange, down 0.19 percent from the prior close of JPY 1,289.50. The trading range gives the analyst downgrade a market context, but the larger valuation question remains whether the next quarters can restore revenue growth while protecting operating profit.