HSBC revised its Bank of Japan forecast to include two 25-basis-point rate hikes in June and December, projecting a policy rate of 1.25% by year-end based on hawkish board dynamics and 2.8% core CPI inflation. The bank also upgraded Marvell Technology to a Buy rating, lifting its twelve-month price target to $300 and boosting fiscal 2027 and 2028 earnings estimates by 21% and 61%, underpinned by AI-driven optical interconnect and CXL sales growth.
HSBC now expects a 25-basis-point increase at the June 16 Bank of Japan meeting and a second 25-basis-point hike in December, bringing the policy rate to 1.25% by year-end. Board member Junko Nakagawa, one of three recent dissenters, will exit on June 29, and her likely successor, Ayano Sato, is seen as more dovish, while other members have signaled readiness to tighten policy. Elevated core CPI at 2.8% and concerns that prolonged low rates could further weaken the yen also underpin the revised view.
HSBC raised Marvell Technology from Hold to Buy and increased its twelve-month price target from $85 to $300, citing strong demand in optical interconnects and CXL-related sales. The firm boosted its fiscal 2027 and 2028 earnings forecasts by 21% and 61%, applying a 42× forward earnings multiple to fiscal 2028 profit and noting a PEG ratio of 0.16 that suggests upside potential.
