We believe the sharp appreciation of the yen is eroding Canon’s (CAJ) revenue and profits. 2Q results were weak with revenue and earnings much below expectations.
We expect revenue in 2009 to be hurt by weak consumer spending and a worsening global economy, and believe the company will struggle to meet expectations in fiscal 2009. We maintain our estimates for the full year.
We also maintain our Sell recommendation on CAJ shares with a six-month target price of $25.00.Zacks Investment Research
