Deutsche Bank Downgrades Lexmark International (LXK) to Sell

[Anonymous]

<p><font size=”5″><strong>Deutsche Bank Downgrades Lexmark International (LXK) to Sell</strong></font></p>
<p><font size=”4″>The firm comments, “LXK shares have rallied ~35% since the end of August when it announced it would exit the Inkjet business and we believe near-term cost savings associated with this restructuring are now fully baked. In the meantime, we believe LXK’s medium-term growth prospects are damaged as its installed base and associated supplies revenue will decline for the foreseeable future, scale benefits dissipate and competitive forces increase. We cut our est’s and rating to ‘Sell’ and view LXK at ~7x FY12 EPS as overvalued.”<br />
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Deutsche Bank trimmed FY12 to $3.8B/$3.73 (vs. prior $3.8B/$3.75) and FY13 to $3.5B/ $4.00 (vs. prior 3.6B/ $4.50).</font> <font size=”4″><br />
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For an analyst ratings summary and ratings history on Lexmark International </font> <font size=”4″><a href=”http://www.streetinsider.com/rating_history.php?q=LXK”>click here</a>. For more ratings news on Lexmark International <a href=”http://www.streetinsider.com/stock_lookup_news.php?q=LXK&type=analyst”>click here</a>.<br />
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Shares of Lexmark International closed at $25.08 yesterday, with a 52 week range of $16.10-$38.34.</font></p>

[Author]

December 13, 2012 at 8:30 AM