Salomon SB Raises Rating on Kodak Shares
Salomon Smith Barney upgraded its investment rating on shares of Eastman Kodak (EK ) to outperform from neutral.
Analyst Jonathan Rosenzweig says that after a sharp downturn late last year -- attributable to weakening travel and a general slowdown in the economy -- feedback from retail survey and other channel checks indicates that Kodak's performance has stabilized, with optimism toward its peak spring selling season improving. Rosenzweig thinks the propensity will be for more positive news flow and in-line or better EPS over the near term. With sentiment toward Kodak shares still decidedly negative, and the stock 37% off its 52-week high, Rosenzweig thinks any such shift in news flow, combined with the stock's already attractive 5.8% dividend yield, could drive a modest recovery in the shares over the next six months.