Jefferies highlights three Japan precision equipment stocks—KOKUSAI, Tokyo Seimitsu, and TOWA—as top picks with significant upside.
The firm cites strong memory demand, tight supply, and robust DRAM/NAND capital investments driving sector recovery.
Expected FY March 2027 growth from HBM, CoWoS probers, and commodity memory recovery could lift stock prices through 2026.
Jefferies notes potential guidance undershoot risk but believes medium‑term upside remains sizable.