< The 2015 All-Japan Research Team

Total appearances: 4

Team debut: 2012

Reclaiming third place after a year at runner-up is Ryo Tazaki, 47. “Like all of Nomura’s best analysts,” one fund manager observes, “he concentrates on fundamental research. It’s very basic and very important — but now, for some reason, there aren’t as many sell-side analysts who do classic work.” Osaka-based Kubota Corp., which makes hay loaders, tractors and other agricultural equipment, as well as construction machinery, is one of the researcher’s preferred names. Solid demand from Asia and the U.S. is catalyzing sales gains, which also get a boost from the depreciating yen, he notes. Thailand, where turnover grew by roughly 25 percent in the quarter through December, is the linchpin in Asia, Tazaki reports, “owing to the completion of adjustments to farm machinery inventory there, and efforts to expand sales of dry-field tractors to neighboring countries, including Cambodia and Myanmar.” In addition, subsidies for combine harvesters resumed in China in January. Despite some weakness in the domestic market, these offsetting factors should propel operating profit growth by as much as 15 percent in the fiscal year that begins next March, he reckons. Finally, Kubota management recently announced a buyback plan equivalent to 0.6 percent of outstanding shares. Tazaki has assigned the stock a price objective of ¥2,290, which implies a 16.6 percent upside to its trading level late last month.