Goldman Strategists Raise Forecasts for Japanese Shares on Stable Yen View
- Topix EPS growth forecast revised up to 12% this fiscal year
- Inflation, governance reform to support Japan shares, they say
This article is for subscribers only.
Goldman Sachs Group Inc. strategists raised their forecasts for Japanese shares to reflect updated assumptions that the yen likely won’t strengthen much in coming months.
With Japan’s economy expected to remain relatively solid, Goldman boosted its predictions for earnings-per-share growth in the Topix index to 12% in the fiscal year started April 1, and 8% and 7% the following two years, strategists Kazunori Tatebe and Bruce Kirk wrote in a report dated Sunday. The impetus for the change is that the dollar will trade at 145 yen during those three years, they said, compared with a previous view that the Japanese currency would appreciate during the period.