Canon Downgraded to Sell - Analyst Blog
Based in Japan,
Canon, Inc. (
CAJ) is one of the leading designers, manufacturers, and marketers of office equipment, cameras, and optical products in the world. Canon is a high-technology-oriented company with strategies to develop innovative, value-added products that incorporate advanced technologies.
We believe the sharp appreciation of the yen is eroding Canon's revenue and profits. Canon's results for fiscal 2008 were hurt by weak consumer spending and falling demand amid a global economic slowdown. The company's Q4 of 2008 results were disappointing and CAJ cut its forecast for the full year 2009.
We believe the company will struggle to meet expectations with its Q1 being extremely tough with a probable increase in losses. We therefore downgrade CAJ shares to Sell with a six-month target price of $25.00.
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