Goldman Rates Japan Shipmaker a New Buy on Defense Spending

Goldman Sachs Group Inc. rated Japanese shipbuilder Namura Shipbuilding Co. a new buy over rising global defense spending. Shares surged as much as 19% in Tokyo, the most since August.

Namura’s sustained revenue improvement driven by the growing global importance of Japan’s shipbuilding industry hasn’t been fully priced in, analysts led by Norihiro Miyazaki said. Unit prices for new commercial vessel orders should see a steady improvement and drive operating profit to grow 11% annually for the next five fiscal years, according to the brokerage.