American Depositary Shares of Canon Inc. rose on Friday and helped lift an index of Japanese ADRs in afternoon trading, after some analysts said the well-known camera company's outlook is achievable.
Tokyo-based Canon on Thursday posted a nearly 19 percent lower first-quarter profit, partly because a stronger yen made products more pricey for overseas consumers.
The company also lowered its full-year profit outlook, but Citi Investment Research analyst Satomi Ushioda said it's now "within reach," especially given plans to cut costs.
"As such, we believe headline risk has disappeared," Ushioda wrote in a client note.
Also, Ushioda expects color laser printers and SLR digicams to drive short-term earnings growth.
"We are hopeful about copiers not only for office space but for use in commercial printing and expect the latter to take off in earnest," Ushioda wrote.
The Bank of New York Japan ADR Index rose 2.12 points, or 2.1 percent, to 103.82. ADR stands for American Depositary Receipt, which is a security designed to allow U.S. investors to trade shares of companies based overseas. The bank's broader Asia ADR index, which includes countries such as Japan, China, India and others, rose 1.22 points to 160.30.
In the U.S., Wall Street declined on a disappointing readings of consumer sentiment and higher oil prices.
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