Brean Murray Carret & Co. Attracted To Lexmark's Current Levels

Brean Murray Carret & Co. has published a research report on Lexmark International Inc. (NYSE: LXK) as Brean believes that the company's current levels make it an attractive entry point.

In the report, Brean Murray Carret & Co. writes "[We] believe that the incremental issues that seem to be holding back the stock are overblown; namely 1) that LXK's on-book inventory position could be setting the company up for softer-than-expected gross margins in coming quarters and 2) that Lexmark's product levels in the distribution channel are abnormally high, and that as growth “normalizes” and competition firms (presumably from Hewlett-Packard (HPQ, $41.93, Buy)) that both revenue and margins could be pressured."

Brean Murray Carret & Co. reiterates its Buy rating on Lexmark International, which closed yesterday at $36.24.