Zacks Investment Research upgraded shares of Lexmark International Inc. (LXK) from NEUTRAL to OUTPERFORM on July 28, 2014, with a target price of $57.00.
Lexmark's second-quarter results were better-than-expected. Moreover, both revenues and earnings increased on a year-over-year basis, primarily attributed to strong growth in Laser and Perceptive Software business. Forward guidance was tepid, reflecting the Inkjet exit and macro uncertainty. Pricing pressure and a high debt burden remain added concerns. Nonetheless, synergies from the recent acquisitions and renewed focus on the software space could set it back on the growth path. Moreover, the Inkjet exit, software prospects and the MPS approach are positives that will drive the shares in the long term. Thus, given the positive indications we upgrade our recommendation on Lexmark to Outperform.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Lexmark International Inc. (LXK),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment