Jefferies highlighted three Japan precision equipment stocks—KOKUSAI, Tokyo Seimitsu, and TOWA—as top picks with significant upside.
Upside is driven by strong memory demand, tight supply, robust DRAM/NAND capital investments, and expected HBM/CoWoS growth.
The firm expects FY March 2027 earnings improvement and stock price rebounds through 2026, despite possible guidance shortfalls.