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DHG [M-PF -7.0%] - Partnership with Taisho offers additional growth potential - Update

We raise our target price by 37% and upgrade our rating on DHG to MARKET PERFORM. We believe that the company’s long-term growth prospects have been upgraded thanks to cooperation with its new strategic investor Taisho, prompting us to raise our terminal growth rate from 0% to 3%. TP is further supported by a 1.3 ppt decrease in the cost of equity driven by a lower risk-free rate and our lower universal risk premium.