Brean Murray Carret Reiterates Hold on Lexmark
Brean Murray Carret maintains its Hold rating on Lexmark (NYSE: LXK) as the company is poised to grow EPS in the second half of 2012.
Brean Murray Carret comments, "LXK held up well yesterday considering its recent run, that it guided Mar Q EPS below Street, and that it was trading towards 9x, thanks to CY12 EPS guidance materially stronger than Street, its dividend (2% - 3% yield), share repurchasing and strong cash generation. That said, given it sounds like LXK expects more EPS in 2H of the year than typical, at a reasonable valuation and no immediate catalyst, we continue to evaluate the name while acknowledging that if LXK's 2012 guidance comes to fruition, the stock from these levels is likely attractive."
LXK closed at $34.90 a share on Tuesday.
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