YASKAWA Electric: Look Past Quarterly Miss

Yaskawa Electric Corporation is rated "Buy" after a substantial post-results sell-off, which seems too harsh. The company's Q1 headline underperformance was mainly driven by non-recurring items; its normalized operating profit actually rose 14% YoY. A 29% YoY surge in first-quarter bookings and the unchanged full-year guidance support the bullish view that the 1Q miss wasn't structural. I've assigned a "Buy" rating to Yaskawa Electric Corporation (YASKY) (YASKF) (6506.T). The degree of the post-results sell-down is unwarranted. This offers a chance to accumulate the stock at a discount to its listed comparable.