by: Steven Towns posted on: March 22, 2006 | about stocks: CAJ / JPM    

Canon (CAJ) traded as high as 7,830 yen intra-day, its highest ever, before closing at 7,690 yen for a gain of 0.39%. JP Morgan (JPM) issued an upgrade on Canon's stock to "overweight" from "neutral." FISCO news service said JPM believes Canon's fair value is 9,100 yen per share. It has re-evaluated its stance on Canon, now seeing it as a "growth" stock trading at way too low of P/E ratio. Yahoo! Finance Japan shows Canon has a trailing twelve-month P/E of 17.76. Google Finance shows Canon's ADRs with a TTM P/E of 17.24 and a forward P/E of 14.81. JPM also pointed out that fact that Canon's stock has room to rise because of the fact the 1 trillion yen of cash (approx. US$8.56b) it is sitting on has yet to be incorporated in its share price. A Radio Nikkei summary pointed out that as more new mutual funds are created in Japan more institutional buying of Canon is expected.

CAJ 1-yr chart:

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