Credit Suisse Initiates Makita at "Overweight" (MKTAY)

| About: Makita Corp. (MKTAY)

KABDAS-EXPRESS news service from Japan reports that Credit Suisse Securities - Japan initiated coverage on Makita Corp (NASDAQ:MKTAY) at "overweight" in a report last Friday giving three main reasons for its decision. Makita reportedly makes more than three-fourths of sales outside of Japan and that's in-line with Credit Suisse's expectations of expanded EU sales and a positive currency conversion effect from the euro.

A looming economic slowdown in the U.S. and rising rates won't do much to help Makita's stock. However, the EU represents opportunity -- despite a rising inflation and rate climate -- because of a recovering German economy and potential from CEE countries.

I am concerned about how long the euro will trade at all time high conversion rates against the yen. Presumably it will continue until the Bank of Japan begins raising rates and all the attention focuses on Japanese debt instruments.

Credit Suisse's third reason for giving an overweight rating to Makita was its expansion of lithium battery powered products.

Makita Corp (MKTAY) 1-year chart: