UBS has adjusted its price target for Sumitomo Corp. from JPY 3,490 to JPY 3,530, while maintaining a Neutral rating. This adjustment reflects a minor revision in the company's fair-value price-to-book ratio, which is now set at 0.86X.

The UBS analyst noted that Sumitomo Corp. has visible earnings growth in core sectors such as infrastructure, urban development, and energy transformation, which could lead to higher return on equity (ROE) expectations. However, there are challenges to consider, including stalled earnings from problematic projects and uncertainties regarding policy measures that may impact the reduction of the cost of equity (COE).

The market is anticipating strategic initiatives that could result in multiple expansion. Sumitomo Corp.'s stock performance will depend on its ability to navigate these challenges and leverage its strengths in core business areas. Investors will closely monitor the company's strategic moves and their impact on financial performance.