Fujifilm Upped to Strong Buy


Zacks Investment Research upgraded Fujifilm Holdings Corporation (FUJIY) to a Zacks Rank #1 (Strong Buy) on Jul 9, based on its efforts to innovate technologies.

Why the Upgrade?

Fujifilm has been successfully launching new products and technologies to gain a wider market share in the digital world. Recently, the company launched a technology that can change the impression of an image by controlling its texture, i.e. colors and shapes, based on human visual perception. This technology is useful in enhancing the visibility and shape of an image. Moreover, the company launched new firmware for three X-series cameras last month. 

In addition, Fujifilm expects its pharmaceuticals business to gain traction in the coming quarters and be a source of high revenue. The Medical Systems business is expected to witness double digit year over year growth in fiscal 2015. Also, sales in the Toyama Chemical and Fujifilm Pharma are anticipated to rise in the coming quarters.

Fujifilm expects revenues for fiscal 2015 to come at ¥2,460 billion, reflecting a year-over-year hike of 0.8%. Operating income is projected at ¥160.0 billion, with an increase of 13.6% from fiscal 2014. Further, Fujifilm estimates the net income for fiscal 2015 at ¥85.0 billion, rising 4.9% year over year. This will lead to earnings of ¥176.36 per American Depositary Receipt (:ADR).

Over the past seven days, the Zacks Consensus Estimate for fiscal 2015 has climbed 2.3% to $1.79 per ADR. The company is expected to report fiscal first-quarter 2015 results (ended Jun 30, 2014) on Jul 30.

Other Stocks to Consider

Other stocks in the industry with a favorable Zacks Rank include Brooks Automation, Inc. (BRKS), Entegris, Inc. (ENTG) and Ciena Corporation (CIEN). All these stocks hold a Zacks Rank #2 (Buy).

Read the Full Research Report on CIEN
Read the Full Research Report on FUJIY
Read the Full Research Report on BRKS
Read the Full Research Report on ENTG

Zacks Investment Research

View Comments (0)