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Shares of
Nomura Holdings, Inc. surged more than five percent on Monday and established a new 52-week high of $7.23.
At a time when financial related stocks are trading lower as a result of Greece's referendum result, the move higher in Nomura's stock warranted a second look.
One possible explanation for the move higher was a
report by "Insider Trading Report" who stated that shares of the Japan-based global investment and financial services business received an upgrade to Equal-weight from Underperform by analysts at Barclays.
The news report is actually incorrect. Shares of Nomura were upgraded on June 23 by Barclay's Japan-based analyst Azuma Ohno.
"Core business earnings have been stable, mainly led by the retail business, and we expect expansion of investment-trust fees and wrap-account income to strengthen consolidated profit absent a sudden change in the market environment," Ohno wrote. "The wrap-account balance is growing at a faster pace than at Daiwa [Japan's second largest securities brokerage after Nomura], and we anticipate a large contribution by wrap-related income to profit growth in the retail business."
Ohno also noted that within Nomura's wholesale division, overseas income has improved to breakeven level and is expected to deliver a profit from overseas business in the third quarter 2016, including "anticipated income from a major IPO."
Ohno also stated that Nomura's investors could expect dividend increases that correspond to the company's growing profit trend. In addition, the company could institute a buyback program if profit "overshoots."
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