S&P Maintains its HOLD Rating on Eastkman Kodak Stock, Target Price Reduced

October 01 00:00 2011

New York, October 1 (RainbowNewsLine.com) – Analyst Michael Souers of S&P Equity Research reiterates his HOLD rating on Eastkman Kodak Stock (NYSE: EK). The target price has been reduced from $3 to $1.

Analyst Michael Souers, in a research note published yesterday, mentions that according to an unconfirmed Bloomberg report Kodak has hired Jones Day for advice. The company is said to be considering many options including a bankruptcy filing. Bidders for its patents are apprehensive to proceed since a purchase may amount to fraudulent transfer if Eastman Kodak becomes insolvent, the analyst says. Eastman Kodak would continue to burn its cash and might be forced to file Chapter 11 bankruptcy without the patent sales due to continued profitability issues and lack of visibility in near term prospects, the analyst adds.