Sumitomo Bakelite May Benefit From Demand for Encapsulation Materials -- Market Talk

0243 GMT - Sumitomo Bakelite may benefit from demand for encapsulation materials used to protect semiconductor chips, say SMBC Nikko Securities analysts in a report. Sumitomo Bakelite, whose core business is encapsulation materials, is positioned for sustained growth amid tailwinds from higher sales and capital expenditure at outsourced semiconductor assembly and test firms, the analysts say. In short term, the company's profit is likely to grow thanks to factors including higher capacity utilization at OSAT companies and other customers. The brokerage initiates coverage of the stock with a neutral rating and a target price of 7,100 yen. Shares are 5.2% lower at Y6,774. (ronnie.harui@wsj.com)

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July 23, 2026 22:43 ET (02:43 GMT)