Reinstate at Neutral: At the crossroads, awaiting light on transformation returns

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Reinstate at Neutral: At the crossroads, awaiting light on transformation returns

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Canon (7751)

Reinstate at Neutral: At the crossroads,

awaiting light on transformation returns

Reinstating Coverage: NEUTRAL | PO: 4,700 JPY | Price: 4,310 JPY

19 June 2026

Reinstate at Neutral, PO of ¥4,700 (implied return 9%) Equity

We reinstate coverage of Canon with a Neutral rating and a price objective of ¥4,700.

The current mid-term management plan marks a phase in which the company’s long- Mayako Ouchi >>

standing portfolio shift begins to materialize through strategic products and earnings Research Analyst BofAS Japan

contributions, making it a key period to assess the returns on past investments. Our +81 3 6225 6434

price objective is based on applying an 11x P/E multiple (blend of peer average for mayako.ouchi@bofa.com

multifunction devices plus 5%) to our FY12/27 EPS estimate of ¥429. MikioResearchHirakawaAnalyst >>

BofAS Japan

Earnings: Mature businesses still account 80% of profits mikio.hirakawa@bofa.com

We expect operating profit to grow from ¥455.4bn in FY12/25 to ¥527.0bn in FY12/28,

implying a CAGR of 5% in line with market expectations. In structurally growing

segments such as Semiconductor Production Equipment (SPE) and medical, strategic Stock Data

products, including nanoimprint lithography and Photon Counting CT (PCCT), are set to

Price 4,310 JPY

contribute from FY12/27; however, their earnings impact is likely to remain limited over

Price Objective 4,700 JPY

the next three years. Meanwhile, mature businesses are supported by structural reforms

Date Established 19-Jun-2026

and near-term market growth, and we expect them to continue to account for the bulk

Investment Opinion A-2-7

of group profits in the near term.

52-Week Range 3,956-5,033 JPY