KONICA MINOLTA JUMPS ON RATING UPGRADE, COST CUTS

27 Oct 2009 – KM News

KONICA MINOLTA JUMPS ON RATING UPGRADE, COST CUTS

Konica Minolta Holdings Inc rose 5.6 percent to 924 yen, with a rating upgrade from Credit Suisse and its setting of a higher target for costs cuts offsetting a downward earnings revision on Friday.

Credit Suisse raised its investment rating for Konica Minolta to ‘outperform’ from ‘neutral’, saying two major concerns for Konica Minolta shares – its excessively bullish projections for office equipment and the risk of declining market share in LCD film – have largely been priced in.

The brokerage’s decision on the rating change was made before Konica Minolta’s announcement of the revision and was made public late on Friday afternoon.

Konica Minolta Senior Executive Officer Shoei Yamana told Reuters after the earnings revision that the company now plans to cut costs by 38 billion yen for the year to March 2010, 15 percent more than it originally planned.