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Japanese companies bet on yen recovery from Brexit levels

A man holds a Japanese 1,000 yen banknote as he shops at a store in Tokyo.
Tomohiro Ohsumi | Bloomberg | Getty Images

As the yen cracks below 100 for the first time since the Brexit vote, Japan's largest companies are betting the currency will recover and boost profits.

For 20 Japanese companies with a market cap of more than $15 billion, the average forecast for was 107.2 by March 31, 2017, according to analysis of their latest earnings reports by AlphaSense, a financial search engine.

Some on Wall Street agree with that view. UBS expects the yen to reach 104 versus the U.S. dollar in the next three to six months, and 107 in the next 12 months. Bank of America Merrill Lynch is even more optimistic with expectations the Japanese currency will reach 105 by year-end and 115 by the end of next year. The yen briefly fell below 100 against the dollar Tuesday morning to hit its lowest since June 24, after the surprise U.K. vote to leave the European Union.