Market Overview

UPDATE: Deutsche Bank Downgrades Lexmark International to Sell on Exit From Inkjet Business

Related LXK
Markets Surge; McDonald's Posts Lower Sales
US Stock Futures Gain After Strong Apple Results

Deutsche Bank reduced its rating on Lexmark International (NYSE: LXK) from Hold to Sell with a reiterated $18 price target.

Deutsche Bank commented, "We believe LXK generates ~15% of its 2012 revenue from inkjet hardware and supplies and we estimate ink comprises ~$2.50+/share in earnings in FY12. Over the next few years, we expect this earnings stream to trend towards zero, declining at a 35-40% Y/Y clip as the installed base shrinks following the exit of hardware production. This earnings exposure is substantial and it remains unclear how LXK will sustain EPS over the medium term. In the meantime, we expect competition in laser to heat up."

Lexmark International closed at $25.45 on Wednesday.

Latest Ratings for LXK

DateFirmActionFromTo
Jul 2014Raymond JamesDowngradesMarket PerformUnderperform
Jul 2014BernsteinDowngradesMarket PerformUnderperform
Jul 2014Tigress FinancialDowngradesStrong BuyBuy

View More Analyst Ratings for LXK
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

Related Articles (LXK)

Around the Web, We're Loving...

Get Benzinga's Newsletters