"Canon (CAJ ) : Ups to 5 STARS (strong buy) from 3 STARS (hold) Analyst: Megan Graham-Hackett
December quarter EPS of US$1.08 vs 81 cents is above our $1.07 estimate, driven by new models of digital still cameras and inkjet printers released right before holiday season. We expect Canon to continue to leverage its market position in digital still cameras, copiers and printers, and to override price pressure through proactive cost reductions and product mix. We are raising our 2006 earning per American Depositary Shares estimate to $4.41 from $3.78, and see $5.07 for 2007, on improved margin. Our 12-month target price rises to $80 from $63."
Right. S&P estimate seems high, though CAJ might be being a little CAJey. Meanwhile, as you know, all estimates will reflect fluctuations in currency-exchange rates too: strong dollar means better prices and bigger profits for CAJ and other exporters to US.