UPDATE: JP Morgan Upgrades Canon to Neutral on Positive Trend Shifts
JP Morgan raised its rating on Canon (NYSE: CAJ) from Underweight to Neutral.
JP Morgan noted, "Over the past few days three key developments have shifted trends in Canon's favor: management announced a special dividend to commemorate the company's 75th anniversary, yen appreciation appears to have stalled, and the launch date for the EOS6D was pushed up. We believe these developments will support Canon's earnings and valuation. Although longer-term risks remain, including declining print volumes, stiff competition from Samsung Electronics in the MFP market, and erosion of compact camera demand by camera-equipped smartphones, a decline in the yen's value—even if only temporary—should mitigate the negative earnings pressure from these risk factors."
Canon closed at $33.16 on Friday.
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