Lexmark International initiated with "overweight"

10/05/06 - Prudential Financial

NEW YORK, October 5 (newratings.com) - Analyst Jesse Tortora of Prudential Financial initiates coverage of Lexmark International Inc (LXK) with an "overweight" rating. The target price is set to $65.

In a research note published this morning, the analyst mentions that the company is poised to gain share of the inkjet and laser printer markets going forward. Lexmark International's inkjet printer segment is likely to regain substantial market share in the forthcoming quarters due to increasing sales of new products and improving retail relationships, the analyst says. The company is expected to gain about 1% share of the laser market over the next four quarters by providing higher profitability to channel partners relative to its competitors and through its new product range, Prudential Financial adds.