< The 2014 All-Japan Research Team
Morgan Stanley Securities Co. First-Place Appearances: 8
Total Appearances: 10
Analyst Debut: 2005 Toshiya Mizutani earns his tenth straight appearance on this roster — and since 2007 investors have deemed him the best construction analyst in town. Covering 21 stocks, five more than a year ago, the Mitsubishi UFJ Morgan Stanley Securities Co. researcher has "developed a deep understanding made richer from his long experience," as one portfolio manager puts it. In October, anticipating rising demand in the run-up to the 2020 Summer Olympics in Tokyo, Mizutani elevated two major, locally based players from neutral to outperform: Maeda Corp., a general commercial contractor, and Obayashi Corp., a civil engineering services provider and infrastructure builder. By the middle of March, Maeda's shares had slipped by 5.8 percent, to ¥602, and the Obayashi stock had climbed 5 percent, to ¥611. During the same period the sector was nearly flat. Both names are still recommended, however. "We are suggesting that investors take a long-term perspective on the construction sector, since investment decisions based on short-term perspectives may result in losing sight of the companies' essential values," says Mizutani, 55. The past few years' low-profit orders will "wind down," he adds, and Obayashi's Southeast Asian and U.S. subsidiaries are "expanding steadily." Clients appreciate the analyst's enthusiasm. "Mizutani shares solid ideas with a kind of youthful passion," a second supporter offers.
