Hitachi Ltd.'s (Hitachi) FY 2009 revenues were in line with our and market expectations, while operating and net performances exceeded our expectations. We are likely to revise our operating income estimates upwards to reflect Management guidance and the company's cost cutting initiatives. Consequently, although the common stock target price does not support a HOLD rating at current price levels, we maintain our HOLD rating and will reassess our target price…

With Japan experiencing recession, reflected by the significant decline in exports and low consumer spending levels, we remain concerned over Hitachi’s performance as it derives most of its revenues (approximately 58% of 3Q 09 revenues) from the domestic economy. We expect sluggish demand from construction and automotive component markets to continue, weakening the P&IS;segment’s revenues in FY 2009....

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Hitachi Ltd.’s (Hitachi) 3Q 09 provisional results were below our expectations. Hitachi has revised its FY 2009 revenue and profitability guidance downwards, which is also significantly below our previous expectations. We will further reduce our estimates to reflect the weak Management outlook and accelerating decline in demand for products in its…