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Technology Stocks : Eastman Kodak Company (NYSE: KODK) -- Ignore unavailable to you. Want to Upgrade?

To: Done, gone. who wrote (227)	10/4/2005 12:52:27 PM
From: Done, gone.	Respond to of 484

Kodak Downgraded to Underperform Tuesday October 4, 12:16 pm ET Kodak Downgraded to Underperform Due to Weak Profit in Digital Market; Shares Fall on News NEW YORK (AP) -- Shares of Eastman Kodak Co. fell 3.6 percent Tuesday after the photography giant was downgraded by JPMorgan Chase, with analysts expressing concern about weak profit in the digital market and a declining traditional film market. Kodak shares were down 86 cents to $23.24 in midday trading on the New York Stock Exchange. JPMorgan analyst Sameer Doctor cut his rating on the company to "Underweight" from "Neutral," and said by 2008, the company's traditional business could decline further than Kodak's current $3 billion to $4 billion forecast, especially as Hollywood speeds up its switch to digital cinema. JPMorgan now expects revenue of $14.36 billion for the current year and $14.95 billion for 2006. Analysts polled by Thomson Financial, on average, were expecting sales of $14.5 billion for 2005 and $15.05 billion for 2006. Kodak, the world's largest film supplier, is currently restructuring its operations to switch over to the digital market, and plans to become a standalone digital business by 2008. But Doctor said he is concerned about the company's viability as a digital business by that date. The company's digital profitability guidance is $150 million short of its original target,he wrote, and upcoming risks include digital pricing pressure during the holiday season. The changeover is likely to weigh on the company, and 2006 may be the most difficult year in the transition process, the analyst said. Kodak's stock could underperform as investors focus more on cash generation and core earnings, JPMorgan said. In addition, the company could be in violation of prospective debt covenants as early as the fourth quarter. biz.yahoo.com