< The 2014 All-Japan Research Team
Total Appearances: 11
Analyst Debut: 2004 It's little wonder that, except for 2011, when he dipped to second place, Masahiro Nakanomyo of Barclays has been the top-ranked analyst in this sector every year since 2007. He "covers a lot of companies," one fund manager says, "and has more knowledge and experience than anyone else." Although the digital-camera market is expected to post overall declines because of the ongoing incursion of smartphones, Nakanomyo, 53, is convinced that the appetite for single-lens-reflex, or SLR, cameras will recover after an inventory adjustment. In emerging economies, the penetration rate for SLR cameras, which are generally considered to have better picture quality than camera phones, is still low, he points out. Given its exposure to that industry, he is urging clients to buy Tokyo-based Nikon Corp., which he also believes will enjoy earnings momentum this year. Regarding semiconductor precision equipment, Nakanomyo envisions stabilizing market growth over the next three to five years, as consolidation takes hold. One example he cites is the proposed $9.4 billion acquisition of Tokyo Electron by Applied Materials of the U.S. The companies manufacture complementary products, so "if they are integrated, they can improve research and development efficiency and can offer total solutions for their customers," Nakanomyo explains. Announced in September, the deal is expected to close in the second half of this year, producing a combined entity valued at approximately $29 billion. The researcher also continues to highlight his buy rating on Topcon Corp., in part because the Tokyo-based provider of medical equipment and measuring devices has maintained a clear expansion strategy that he believes will yield mid- to long-term gains in several business areas. Among these are the satellite positioning technologies it manufactures for use in improving efficiency in the agriculture industry. "His research reports are more detailed and he goes deeper than other analysts," cheers another advocate.
