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Nomura Holdings Inc NMR

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Morningstar’s Analysis

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Nomura's Strong Year Ends Up Lackluster After Archegos Losses; Near-Term Environment Remains Good

Michael Makdad Senior Equity Analyst

Analyst Note

| Michael Makdad |

We raise our fair value estimate for Nomura from JPY 570 per share to JPY 585 as we roll forward our model by a year. Given current exchange rates, our fair value for Nomura's ADRs remains $5.45.

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Company Profile

Business Description

Nomura is Japan’s largest broker, about twice the size of rival Daiwa Securities and roughly three times the size of the securities units of the three megabanks. It is also the largest asset-management company in Japan, with a similar size differential compared with its rivals. Despite its topnotch brand name in retail broking and asset management in Japan, Nomura has struggled to compete effectively in the institutional securities business against larger global rivals. In 2008, Nomura bought European and Asian assets of the failed Lehman Brothers, which led to a sharply higher cost base but did not provide commensurate revenue. Nomura has reduced the scale of these businesses but maintains its ambition to compete globally with the top players.

Contact
9-1, Nihonbashi 1-chome, Chuo-Ku
Tokyo, 103-8645, Japan
T +81 352551000
Sector Financial Services
Industry Capital Markets
Most Recent Earnings Dec 31, 2020
Fiscal Year End Mar 31, 2021
Stock Type
Employees 26,629