Eastman Kodak Co. (EK) - Bear of the Day
We downgrade our recommendation on Eastman Kodak Co. (EK) from Neutral to Underperform based on the recent loss of lawsuit against Apple Inc. and Research In Motion Limited for infringement of patent upon initial determination.
Zacks reduced its fiscal 2011 and 2012 estimate being pessimistic on the final decision to be released on May 23. Moreover, Kodak operates in a highly competitive market, where it encounters aggressive price competition for all its products and services from numerous companies globally.
The company's huge exposure to volatile products is also a matter of concern. Kodak's huge dependence on third party manufacturers and external suppliers might also remove its product reliability.
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