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Fujifilm (FUJIY) Poised for Growth on Robust Product Demand

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We issued an updated research report on premium multinational firm, FUJIFILM Holdings Corporation (FUJIY - Free Report) , on May 31, 2016.

Bullish Factors

Fujifilm expects gradual recovery in the global economy to boost its business in the near future. The company believes that the adverse impact of economic weakness in certain countries like China would be offset by a rise in demand across the U.S., the U.K., Japan and other emerging economies. The company has recently implemented a new VISION 2016 (Apr 1, 2014 to Mar 31, 2017) plan to enhance improved healthcare, documents and functional material business. Moreover, the demand for Fujifilm’s photo imaging, industrial products, medical systems and electronic material products is steadily improving. Such optimistic aspects, together with the company’s strengthening Asia-Oceania business, are expected to boost revenues in the upcoming fiscal year.

Further, we expect Fujifilm’s strategic inorganic and organic growth programs to strengthen its financial fundamentals in the near term. Based on all these bullish factors the company expects to generate revenues worth ¥2,550 billion in fiscal 2017. This translates to an improvement of 2.3% year over year.

Headwinds

We believe that this Zacks Rank #1 (Strong Buy) stock would continue to report robust top-line and bottom-line results in the quarters ahead. However, certain industry-specific negativities might hurt Fujifilm’s commercial prospects. For instance, the company faces stiff competition, which raises market share risks. Also, unfavorable changes in the political, environmental, social and economic aspects of international markets may adversely affect the company’s results in the upcoming quarters.

Other Stocks to Consider

Other favorably placed stocks from the industry that warrant a look include ACI Worldwide, Inc. (ACIW - Free Report) , ADTRAN, Inc. (ADTN - Free Report) and Alpha & Omega Semiconductor, Ltd. (AOSL - Free Report) . All the three companies currently hold a Zacks Rank #2 (Buy).

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