By Masumi Suga
Aug. 18 (Bloomberg) -- Komatsu Ltd., the world's second- largest maker of earthmovers, rose the most in a month in Tokyo trading after Nikko Citigroup Ltd. raised its rating, saying the current price is ``a good investment opportunity.''
The shares rose 3.8 percent to close at 2,445 yen on the Tokyo Stock Exchange, the biggest gain since July 22. Komatsu is down 20 percent this year, compared with a 14 percent decline in the Nikkei 225 Stock Average.
Nikko Citigroup analyst Yoshinao Ibara upgraded his rating to ``buy'' from ``hold,'' saying the company is countering risks of a slowdown in developed countries by tapping demand from ``resource-rich countries'' including Australia and in Central and South America, Asia, and the Middle East.
``Komatsu has established a business platform in a wide spectrum of emerging economies,'' Ibara said in a report dated Aug. 15. ``Business expansion in resource-rich countries in particular will continue to drive earnings.''
To contact the reporter on this story: Masumi Suga in Tokyo at msuga@bloomberg.net.
Last Updated: August 18, 2008 02:35 EDT
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