Mitsubishi raises its price target by 5.09% to 7,365.25 yen

The one-year average price target for Mitsubishi ( TYO: 8058) has been revised upward to 7,365.25 yen per share. This represents a 5.09% increase from the previous estimate of 7,008.25 yen as of July 5, 2023.

This target is an average of various projections provided by market analysts. The most recent targets range from a minimum of 6,262.00 to a maximum of 8,799.00 yen per share. The average price target indicates a 4.21% increase from the last reported closing price of 7,068.00 yen.

At the current price, the company’s dividend yield remains at 2.83%. Additionally, its dividend payout ratio is 0.23. This indicator shows what proportion of income is distributed as dividends. A ratio of 0.23 means Mitsubishi is reinvesting most of its earnings back into the business, which is usually a sign of good growth prospects.

The company’s dividend growth rate over the past 3 years is 0.49%, demonstrating a steady, albeit modest, increase in shareholder payments.

I am surprised to see how the market sentiment toward Mitsubishi has improved. There is a 2.20% increase in the number of institutional owners compared to the previous quarter. The average portfolio weight dedicated to stock 8058 is 0.44%, with an increase of 2.59%. However, the total number of shares held by institutions decreased slightly by 0.43%, down to 108,009,000 shares.

Among the most prominent shareholders, several firms have significantly increased their positions. One of them increased its stake by an astonishing 98.62%, from 213,000 to 15,485,000 shares, boosting its portfolio allocation by 11,091.06%. Another firm raised its position by 98.57%, while a third increased its holdings by an impressive 99.27%.

These figures make me think that major institutional investors are betting heavily on Mitsubishi. Do they see something that retail investors do not? With a modest but stable dividend and a conservative payout policy, it seems the company is preparing for sustainable growth.