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SMALL BUSINESS
Lexmark shares fall after Goldman 'Sell' rating
AP
NEW YORK -Shares of Lexmark International Inc. sunk Monday after Goldman Sachs put the stock on its "Conviction Sell" list, arguing that investors are overvaluing the printer and copier company.
In a note to clients, Goldman analyst David Bailey said Lexmark shares have climbed beyond what they are worth since third-quarter results topped Wall Street forecasts last month.
The shares fell $1.43, or 5.4 percent, to $25.25 in midday trading.
Shares closed at $26.68 on Friday, up $4.11, or 18 percent since the company posted earnings on Oct. 20 and announced plans to cut 825 jobs. Restructuring charges cut earnings by nearly three quarters. But excluding items, Lexmark earned 65 cents per share, compared with the 45 cents analysts expected.
Bailey said the news "raised hopes that Lexmark has turned a corner in its much-delayed turnaround" but said share gains are "unsustainable given its weak competitive position" and slower equipment sales. Revenue fell 15 percent in the most recent quarter.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2009-11-09 11:59:36
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