Eastman Kodak Upgraded To Hold

Brean Murray Carret & Co. has published a research report on Eastman Kodak Company

following a softer 3Q that forecasts the possibility that the company may burn exceed operating income as IP litigation continues with Apple

and RIMM

, and has upgraded the company to Hold. In the report, Brean Murray Carret & Co. writes "so while the EK business ex-IP income was softer than we had expected (operating income $'s of -$125M vs. our estimate of -$42M), the unexpected IP income and EK's comments around it could leave investors feeling more optimistic regarding the potential for on-going IP income streams. EK has now substantially over-achieved its annual IP income revenue guidance of $250M - $350M for the last two years and commented on the call that 1) in hindsight, they were too conservative in their assumptions and 2) they continue to feel just as good as they have about the opportunity to monetize their patents through IP contracts. While not commenting too specifically on this deal, EK did comment that it was related to digital camera technology, that it was a new partnership, and that it was not related to the ongoing litigation of Apple and RIMM." Eastman Kodak closed yesterday at $4.58.