Nissin Kogyo Shares Surge After Citigroup Raises Auto-Brake Maker to `Buy'

Nissin Kogyo Co. jumped the most in 15 months in Tokyo trading after the Japanese maker of auto brakes was raised to “buy” from “hold” at Citigroup Global Markets Japan Inc.

Shares of the Honda Motor Co. affiliate soared 11 percent to 1,478 yen, headed for the steepest gain since February 2009 as of 9:34 a.m. on the Tokyo Stock Exchange. The stock had the second-largest percentage increase on the Topix index, which rose 1.3 percent.

“We think they are likely to outperform other Honda- affiliates moving forward, as the mechatronics business enters a renewed growth phase,” Citigroup analyst Arifumi Yoshida wrote in a report dated yesterday.

Yoshida boosted his share price estimate on the stock to 1,810 yen from 1,430 yen.

Nissin Kogyo has advanced 2.7 percent in 2010, compared with a decline of 3 percent by the Topix.

To contact the reporter on the story: Akiko Ikeda in Tokyo at iakiko@bloomberg.net.

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