Barclays Maintains an 'Equalweight' on Lexmark (LXK); Lowering Estimates Modestly on Potential for Higher Software Costs, Currency

Barclays maintains an 'Equalweight' on Lexmark International (NYSE: LXK) price target of $31.00.

Barclays analyst says, "We are lowering our EPS estimates through FY13 due primarily to the potential for higher costs (including investments in Software) and currency headwinds. For F4Q, we estimate non-GAAP EPS of $1.18 (unchanged) based on a 5% y/y revenue decline to $1.05B (was $1.09B) and gross margin of 37.5% (was 36.8%). For FY12 we now expect non-GAAP EPS of $4.50 (was $4.55) on a 3% y/y revenue decline, gross margin of 37.5% (was 37.4%) and operating margin of 11.1% (was 11.2%). For FY13 we now expect non-GAAP EPS of $4.30 (was $4.40) on a 2.7% y/y revenue decline, gross margin of 37.5% (was 37.4%) and operating margin of 10.8% (was 11%)."

For more ratings news on Lexmark International click here and for the rating history of Lexmark International click here.

Shares of Lexmark International closed at $29.22 yesterday.

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