Nissan saw its stock rise by 8.9% in Tokyo after UBS AG raised the carmaker’s rating because the stock’s decline has boosted its dividend yield.
Nissan gained 43 yen to rise to a total of 527 yen at the 3 p.m. close of Tokyo Stock Exchange trading. An analyst at UBS Securities Ltd. raised his rating on the stock, moving it from the “buy” category to the “neutral” category. The move is an impressive one, especially with the struggling car makers around the world trying to keep things somewhat consistent.
Other stocks in Japan rose as well, marking a fairly good day for the exchange. “The market seems to have regained its sanity somewhat,” said Naoki Fujiwara, who oversees about $720 million worth of investments in the market at Shinkin Asset Management Company in Tokyo. “Current share prices are too cheap relative to earnings, book values and dividends.”
How this will impact Nissan overall remains to be seen, but in the volatile markets of today’s fiscal uncertainty, any change in the upward direction can be viewed as a good thing.
For more information regarding Nissan cars and how they may be impacted by the current economic climate, drop by your local dealer today.
