Analyst Note
| Ken Foong, CFA |We increase our fair value estimate for Komatsu to JPY 2,710 per share (USD 26 per ADR) from JPY 2,310 (USD 22 per ADR) after considering the slightly quicker-than-expected recovery in third-quarter fiscal 2021 (ending March) and fine tuning our long-term estimates. Our narrow moat and stable moat trend ratings remain intact. We think the shares are fairly valued at the current price, with a gradual recovery in machinery sales priced in.