Lifting FVE to JPY 7,500, but Concerns Regarding Unprofitable Business...

We raise our fair value estimate for Kyocera to JPY 7,500 per share and $67 per U.S. ADR, from JPY 6,700 and $61, respectively, as we have taken a more optimistic view of medium-term components demand and revised our foreign exchange assumption from 120 JPY/EUR to 130 JPY/EUR. While we are impressed with the recovery of its fine ceramic businesses, we are concerned that the company has cut down its full-year guidance for handsets and solar panels, owing to tougher competition and weaker demand. ...