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Upgrades and higher share price targets are starting to move Japanese stocks as it looks like the bulls have regained control. Some of the upgrades were of companies that have ADRs -- see the details below. By the way, the broader market rallied for the fourth straight day, the first time it has done so in three months.

Canon Inc (CAJ) -- HSBC upgraded Canon to "overweight" from "neutral" and raised its target share price to 6,600 yen ($57.55 -- equal to $86.33 for its ADRs) from 6,000 yen (with new EPS estimates of 319 yen for '06 and 330 yen for '07 on a 3:2 split adjusted basis) based on stronger-than-expected demand in the U.S. Canon gained 3.24% to close at 5,740 yen ($50.05) -- equal to $75.08 for its ADRs, which closed yesterday up 0.18% at $73.40. Canon said it is entering the commercial printing market but there are conflicting reports on how much market share it aims to grab. (Source: newratings.com, Reuters)

ORIX Corp (IX) -- Rating raised to a "buy" by Goldman Sachs (GS) with a target share price of 35,900 yen ($313.04). Deutsche Bank Securities (DB) on the other hand cut its target share price but information wasn't available on-line. ORIX shares have suffered since Murakami's indictment because of its equity relationship with Murakami's investment fund. ORIX surged 5.18% to close at 29,440 yen ($256.71) or its ADR equivalent of $128.36. Yesterday ORIX ADRs gained 1.74% to close at $124.37. (Source: Reuters, The Wall Street Journal, Yahoo! Japan Finance)

Sony Corp (SNE) -- Coverage initiated with a "1" rating by Shinko Securities. Sony gained 1.39% to close at 5,100 yen ($44.47). Its ADRs closed higher yesterday by 0.77% at $44.38. In recent news Sony borrowed nearly $700 million in its first bank loan in a decade and it was also hit with $240+ million in additional taxes by the Tokyo Regional Tax Bureau, which it is disputing. (Source: Yahoo! Japan Finance)

Trend Micro Inc (TMIC) -- One of seven Japanese firms that JP Morgan (JPM) initiated coverage on at an "overweight" rating in the IT services and software industry. Its target share price is 4,500 yen ($39.24). It closed today up 1.53% at 3,970 yen ($34.62). Its ADRs gained 1.59% yesterday to close at $34.44. (Source: FISCO)

Source: Analysts Move Japanese Stocks with Upgrades (CAJ, IX, SNE, TMIC)