In this briefing:
1. Robotics Earnings: Nabtesco and HDS Results Strong; Still No Reason to Own Fanuc
Following a long period of weakness, robotics related stocks are displaying stronger performance recently as 3Q results have come in weak, but generally done so with management reassurances that this is the bottom.
Company | Peak to Trough Performance | Trough | Performance Since Trough |
-52.8% | 26 Dec | +18.6% | |
-58.5% | 4 Jan | +24.7% | |
-58.9% | 26 Dec | +35.4% | |
-65.8% | 4 Jan | +41.3% |
We had been negative on the sector for some time before turning more constructive in mid January following Yaskawa’s earnings. We concur with the general messaging that this is the bottom based on our analysis of order levels for the companies and regional trend breakdowns. We do not expect a particularly sharp rebound in orders and sales in the near future and believe there is still some risk of these stocks returning toward the lows over the course of the year. However, we believe that the next significant move should be upwards and longer term investors should be looking for entry timings.
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