Bernstein Analyst Questions Lexmark’s Printer Future
According to a Forbes article, Toni Sacconaghi, a Bernstein Research analyst, predicts that Lexmark’s printer business is likely to shut down. “We remain unconvinced that Lexmark can regain traction in inkjet, and believe the business is ultimately likely to be shut down, incurring a further cash drain on the company and some de-scaling risk,” Sacconaghi was quoted in the article. “Lexmark’s laser business, while healthy, is unlikely to sustain the pace of recent share gains and could see slower revenue growth going forward.”
Sacconaghi cut his rating on Lexmark to Market Perform from Outperform and decreased his stock target to $38 from $46. Lexmark shares on March 28 were $33.93, down 35 cents or 1 percent.
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