Lexmark International (LXK) is well positioned in the printer market. The company’s first quarter 2010 results have exceeded our expectation and it has also provided a positive outlook for the second quarter.
The company has a reasonably strong share in the printing and imaging market and enhancing the quality and quantity of its product portfolio. This apart, the company is continuously reaping the benefits of a revival in IT spend, and witnessing strong customer demand.
A new branch of the printing business, managed printing services (MPS), is attracting major industry players. It is defined by Gartner as the ability for the service provider to take primary responsibility for meeting the customer’s office printing needs, including the printing equipment, the supplies, the service and the overall management of the printer fleet. Lexmark has entered into this business in a big way. We upgrade our rating to Outperform.