HPQ - Canon's Valuation Reflects Serious Concerns About Growth And Margins

• COVID-19 is hurting the business to be sure, but the Office and Imaging businesses were seeing serious erosion before the pandemic, as Canon has been slow to cut costs.
• New growth opportunities in commercial printing, medical imaging, and nanoimprint lithography are legitimate, but there are real questions as to whether management can profitably execute on them.
• Canon's valuation reflects a high level of pessimism regarding the company's future, but without real evidence of change, that pessimism seems fair.

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