Brean Murray Reiterates Hold Rating on Lexmark International

In a report published Wednesday, Brean Murray, Carret & Co. reiterated its Hold rating on Lexmark International (NYSE: LXK).

Brean Murray noted, “LXK is essentially trading at trough P/E on 2013 EPS and could be close to bottoming (assuming CY13 EPS of ~$3.40, vs. LXK's reduced CY12 guidance of $3.70 ‐ $3.90 ‐ in other words, pretty low expectations). The issue for investors could be that despite valuation, no imminent catalysts are on the horizon (and macro will continue to weigh heavy). Eventual catalysts include 1) compares get more favorable in the Dec Q (and much more favorable heading into 2013), and 2) the software business (now 5% of revenue and growing) should turn profitable in 2013.”

Lexmark International closed on Tuesday at $16.77.