---
title: "Share price pullback in this Japan stock is a buying opportunity: Jefferies"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280545610.md"
description: "Jefferies has upgraded Kubota to Buy, citing a recent share price pullback as a buying opportunity. Analysts believe Kubota's valuation is now more attractive, with expected U.S. sales growth in 2026 driven by new compact track loader products and tractor restocking demand. Jefferies also raised price targets for Kubota to JPY3,000 from JPY2,000, while maintaining Hold ratings on Komatsu, Hitachi Construction Machinery, and Sumitomo Heavy Industries, noting geopolitical risks may affect investor sentiment."
datetime: "2026-03-26T00:01:01.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280545610.md)
  - [en](https://longbridge.com/en/news/280545610.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280545610.md)
---

# Share price pullback in this Japan stock is a buying opportunity: Jefferies

A sharp pullback in the shares of one Japanese stock has opened a buying opportunity, according to Jefferies, which upgraded the company to Buy in a new sector note. Analysts said Kubota’s valuation has become “more attractive,” arguing that company-specific factors should support U.S. sales growth in 2026 despite housing-market risks.Jefferies highlighted new compact track loader products, which accounted for about 30 percent of U.S. sales in fiscal 2025, and restocking demand for tractors as key drivers. The firm also expects Kubota to continue buying back shares, saying the company’s move to shorten the zero-interest period on U.S. retail financing “should help improve its financial status and cash flow generation.” The broader Japan construction-machinery sector has outperformed the TOPIX over the past three months, supported by stronger commodity prices and signs of stabilizing non-mining demand, Jefferies noted. However, stocks have since underperformed by 10 percent or more amid geopolitical tensions.Alongside the Kubota upgrade, Jefferies maintained Hold ratings on Komatsu, Hitachi Construction Machinery, and Sumitomo Heavy Industries, saying their valuations already reflect near-term profit upside. The firm warned that emerging geopolitical risks may weigh on investor appetite for Komatsu ahead of its April guidance update, while HCM remains sensitive to stake-sale decisions by major shareholders. SHI, Jefferies added, still needs to “optimize its existing business portfolio” to support a re-rating.Jefferies raised price targets across all four companies, including a lift for Kubota to JPY3,000 from JPY2,000, citing improved earnings forecasts and stronger sector sentiment.

### Related Stocks

- [6302.JP](https://longbridge.com/en/quote/6302.JP.md)
- [6301.JP](https://longbridge.com/en/quote/6301.JP.md)
- [6305.JP](https://longbridge.com/en/quote/6305.JP.md)
- [6326.JP](https://longbridge.com/en/quote/6326.JP.md)
- [6334.JP](https://longbridge.com/en/quote/6334.JP.md)

## Related News & Research

- [Komatsu Ltd. (6301) Receives a Buy from UBS](https://longbridge.com/en/news/285708703.md)
- [Kubota Revamps Audit & Supervisory Board Lineup Ahead of March Shareholders’ Meeting](https://longbridge.com/en/news/273650236.md)
- [Sumitomo Osaka Cement (TSE:5232) Net Margin Improvement To 5% Challenges Bearish Narratives](https://longbridge.com/en/news/286546206.md)
- [Revenue Beat: Furuya Metal Co., Ltd. Exceeded Revenue Forecasts By 55% And Analysts Are Updating Their Estimates](https://longbridge.com/en/news/286657567.md)
- [K’S Holdings Corporation (8282) Gets a Buy from Mizuho Securities](https://longbridge.com/en/news/286239830.md)