UPDATE 1-RESEARCH ALERT-Citigroup assumes Kodak, Xerox coverage
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Sept 2 (Reuters) - Citigroup analyst Richard Gardner assumed coverage of Eastman Kodak Co (EK.N) with a "sell" rating, citing the headwinds of higher commodity costs, losses in consumer inkjet and additional investment to speed up time-to-market on key digital products.
Gardner, however, assumed coverage of Xerox Corp (XRX.N) with a "buy" rating, saying he expects growth to resume in 2009, druven by new production color products and strong growth in office segment in 2007.
On Eastman Kodak, he said the benefits of the drop in the prices of silver and aluminum were not likely to be seen until the fourth quarter of 2008, due to its hedging program.
Gardner cut his price target on Kodak to $13 from $16, while raising his price target on Xerox to $20 from $17.
Kodak shares closed at $16.19, while Xerox shares closed at $13.93 Friday on the New York Stock Exchange. (Reporting by Adveith Nair in Bangalore; Editing by Anil D'Silva)
