Hewlett-Packard (HPQ) reported a strong rebound in demand for printers on its conference call yesterday, with colour LBPs and laser MFPs showing particularly solid growth. Credit Suisse thinks that could indicate a similar story for Canon (CAJ):
Hewlett-Packard’s 2Q (Feb-Apr) results attest that colour LBPs and laser MFPs have come off a round of inventory adjustments and now are on a volume-based growth track… Upon its 1Q FY12/08 earnings release, Canon hinted that orders are on a solid recovery. While the Hewlett-Packard experience is thus not surprising, we believe it is nonetheless positive in that it confirms Canon’s reading from a user-side perspective, although uncertainties do remain for the latter half of the year (there has been a conspicuous volume-based slowdown in previous quarters).
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