NSSMC Will Acquire Remaining Stake in Nisshin Steel; FVE Raised to JPY 2,510

Re-Initiating Coverage of NSSMC with No-Moat, Stable Trend Ratings, FVE of JPY 1,990

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

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Morningstar, Inc.

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Equity Bottom-Up

Nippon Steel Corporation / Equity Bottom-Up

<p>We see little in <a href="https://www.smartkarma.com/entities/961" target="_blank" data-smartkarma-citation="entities:961:1">Nippon Steel &amp; Sumitomo Metal Corp (5401 JP)</a>'s, or NSSMC’s, 2020 Midterm Management Plan, which runs from fiscal 2019 (ending March) to fiscal 2021, that will change our view on the firm. We think NSSMC remains overvalued and we reduce our fair value estimate to JPY 2,090 (from JPY 2,130) mainly due to a higher-than-expected capital expenditures guidance, which lowers our free cash flow assumptions. Our no-moat and stable moat trend ratings remain.</p><p>Among the key initiatives in…</p>

We see little in Nippon Steel &amp; Sumitomo Metal Corp (5401 JP)'s, or NSSMC’s, 2020 Midterm Management Plan, which runs from fiscal 2019 (ending March) to fiscal 2021, that will change our view on the firm. We think NSSMC remains overvalued and we reduce our fair value estimate to JPY 2,090 (from JPY 2,130) mainly due to a higher-than-expected capital expenditures guidance, which lowers our free cash flow assumptions. Our no-moat and stable moat trend ratings remain.Among the key initiatives in…

NSSMC’s 2020 Midterm Plan Mainly Focuses on Steel; FVE Lowered to JPY 2,090; Shares Overvalued