) to buy from neutral.
Analyst Ben Reitzes says he upgraded the printer maker due to the potential for more a benign inkjet pricing environment into 2004, substantial leverage to laser printer growth in enterprise, and continued upside to estimates. He raised the $3.55 2004 earnings per share estimate to $3.65, based on 8% revenue growth. He also upped the $4.00 2005 estimate to $4.05, reflecting a better mix of laser-printer supplies. He hiked the $80 target to $88.
Reitzes says while Lexmark didn't offer an outlook beyond 2003, and there's no significant news as a catalyst, Lexmark seems more upbeat than usual about its prospects for gaining market share and generating strong cash flow.