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UPDATE: Benchmark Raises PT on R.R. Donnelley & Sons Co. on Increased Margin Pressure

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In a report published Wednesday, Benchmark Company analyst Edward J. Atorino reiterated a Buy rating on R.R. Donnelley & Sons Co. (NASDAQ: RRD), and slightly raised the price target from $12.00 to $13.00.

In the report, Atorino noted, “Despite the prospect of higher sales than previously projected, we are revising down our 2013 EPS forecast on expected pressure on margins from lower pension income, the absence of a favorable customer rebate reversal adjustment and the acquisition of Presort Solutions in 2012. We are raising our revenue forecast from $9.96 billion to $10.07 billion, but reducing our EPS forecast from $1.73 to $1.57. However, we maintain our Buy rating for the stock's attractive current dividend yield and possible share price appreciation and raise our target to $13 reflecting recent industry multiple expansion.”

R.R. Donnelley & Sons Co. closed on Tuesday at $11.13.

Posted-In: Benchmark CompanyAnalyst Color Price Target Analyst Ratings


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