The Nomura Research Institute (OTCMKTS:NRILY) has seen a significant shift in its stock rating. On Monday, Zacks Research downgraded the company from a “hold” to a “strong sell” rating. This change reflects growing concerns among analysts regarding the company’s market performance.
In contrast, on November 19, 2023, Citigroup upgraded Nomura Research Institute from a “strong sell” to a “hold” rating. This juxtaposition of ratings indicates a mixed sentiment among financial analysts. Currently, two research analysts have classified the stock as a hold, while one has assigned a sell rating. According to data from MarketBeat.com, Nomura Research Institute holds a consensus rating of “Reduce.”
Earnings Report Shows Mixed Results
Nomura Research Institute recently released its earnings results on October 30, 2023. The company reported earnings per share (EPS) of $0.33 for the quarter. This figure slightly exceeded the consensus estimate of $1.36 billion in revenue for the quarter, as the actual revenue reached $1.37 billion. The firm achieved a return on equity of 22.63% and a net margin of 12.96%, indicating some operational strength despite the recent downgrade.
Financial analysts predict that Nomura Research Institute will post an EPS of $1.04 for the current fiscal year, suggesting cautious optimism about future performance.
Company Background and Services
Founded in 1965, Nomura Research Institute, Ltd. is based in Tokyo and specializes in management consulting and information technology services. The firm integrates industry research with strategic advisory and systems development, catering to both corporate and public-sector clients facing complex business and technology challenges.
Nomura Research Institute is recognized for its ability to combine consulting insights with large-scale system integration, outsourcing, and software solutions, which support digital transformation initiatives. Its core activities encompass management and IT consulting, system integration, application development, and IT outsourcing.
As stakeholders await further developments, the mixed ratings and recent earnings report highlight the volatility in the company’s stock performance and the challenges it faces in a competitive market.
