Shares of Lexmark International jumped Friday after Barclays Capital analyst Ben A. Reitzes said the stock is underpriced.
Reitzes upgraded the Lexington-based printermaker to equal weight from underweight.
In a research note, the analyst wrote that he still expects the number of Lexmark's regular customers to decline and sees the potential for supplies sales to fall, according to an Associated Press report. But shares have significantly underperformed the market so far this year, he wrote.
Lexmark's stock (LXK:NYSE) jumped $1.11, or 7.3 percent, to close at $16.34. It's trading closer to its 52-week low of $14.82 than to its 52-week high of $37.55.
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"We believe investors know about the issues in printing and emerging threat that HP may be about to get more price-aggressive," Reitzes wrote.
The analyst held his earnings estimate for the second quarter at 53 cents per share, citing the ongoing economic downturn. On average, analysts are looking for Lexmark to earn 60 cents per share, according to a Thomson Reuters survey.