Canon Shares Rise After Profit Jumps; JPMorgan Raises Rating

July 28 (Bloomberg) -- Canon Inc. rose the most in five months in Tokyo trading after reporting profit that beat analyst estimates.

The shares rose 4 percent to 3,655 yen as of 9:06 a.m. on the Tokyo Stock Exchange, the stock’s biggest gain since Feb. 17.

Net income more than quadrupled to 67.6 billion yen ($779 million) in the three months ended June 30 from a year earlier, the Tokyo-based company said yesterday after the market closes. That exceeded the 58 billion yen median of three analyst estimates compiled by Bloomberg News.

“Canon’s result was a positive surprise,” Hisashi Moriyama, a Tokyo-based analyst at JPMorgan Chase & Co., wrote in a report today. “Strong earnings had already been expected but Canon showed an even bigger gain.” He raised the stock’s rating to “overweight” from “neutral”.

-- Editor: Jonathan Annells

To contact the reporter on this story: Mariko Yasu in Tokyo at myasu@bloomberg.net.

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net.