Citigroup Analyst Upgrades Eastman Kodak

Eastman Kodak Co. (EK) is testing a 35-plus year low, so the folks at Citigroup figure it might be time to lay off the camera, printer and media expert. Analyst Matthew Trop is closing out his long held “sell” rating on Kodak shares and moving to a “hold,” but still remains very cautious on the company’s fundamentals, pointing to its balance sheet as one factor that could produce more structural downside in the near term.

But with $10 in cash per share, Kodak’s cash-to-market cap ratio of 60% is eight times that of the S&P 500, which is at 7%, excluding the financials. Its U.S. pension plan is overfunded with a surplus of $2.1-billion, which is considered another factor mitigating the previous balance sheet risk associated with Kodak.

However, with near-term vulnerabilty in the company’s two end markets - consumer and commercial print – Kodak still faces an uphill battle, the analyst said in regards to why the shares are not rated a “buy” at this point.

Mr. Troy also cut his price target for Kodak shares from $22 to $20. It closed at $16.92 on Thursday.