Zacks Investment Research upgraded shares of Mitsubishi UFJ Financial Group, Inc. (MTU) from NEUTRAL to OUTPERFORM on July 05, 2012, with a target price of $5.50.
We are upgrading our recommendation on Mitsubishi UFJ to Outperform based on the company's impressive earnings results for the fiscal year ended March 31, 2012. The company s net income increased 68% year over year. The growth was primarily aided by lower G&A expenses and a significant decline in consolidated credit costs. Improved loans and deposits were also among the positives. Yet, reduced gross profits and net interest income were the headwinds. The company's strong business model, diversified product mix and lower credit costs are expected to support its bottom line going forward. However, we are concerned about increasing competition and the volatility of the Japanese economy.
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