04:08 AM EDT, 04/24/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Canon's Q1 2024 net profit rose 6% to JPY59.9 bln, within our expectations, amid revenue growth of 2% to JPY988.5 bln. Pre-tax income saw moderate gain of 2% to JPY89.2 bln but was driven by significant swings for each segment: Printing +31% to JPY69.6 bln; Medical -18% to JPY5.7 bln; Imaging -60% to JPY14.9 bln; and Industrial +10% to JPY12.4 bln. We believe earnings contraction for Imaging will persist given the shrinking mirrorless and digital camera market (inflation, shift in consumer preference), with Canon likely to continue raising marketing expenses to combat dwindling sales. In other segments, earnings growth is likely to be unexciting due to subdued corporate spending for Printing products and small earnings contribution for Industrials and Medical (collectively 18% of PBT). We thus maintain our 2024/2025 EPS forecasts, which are 7.9%/10.0% below consensus, respectively. We keep our target price of USD31, valuing Canon at 17x 2024 P/E.