Goldman Sachs Updates Estimates on Bowne & Co. (BNE)

Goldman Sachs has updated its estimates on Bowne & Co. BNE following the announcement that BNE's acquisition by RR Donnelley is expected to be completed soon. In a note to clients, Goldman Sachs writes, "We have reduced our 2010-2013 estimates given recent softness in capital markets activity, although we do expect to see a 2011 pickup off the lower 2010 base. We anticipate near-term margin weakness in Shareholder Reporting due to competitive pricing pressure and the investment required to support new business initiatives like XBRL. Our 2010/2011/2012/2013 EBITDA estimates move to $42mn/$74mn/$86mn/$96mn from $61mn/ $77mn/$90mn/$96mn previously. Our 2010/2011/2012/ 2013 EPS estimates move to $0.05/$0.46/$0.62/$0.77 from $0.32/$0.48/$0.66/$0.76 previously." BNE closed Monday at $11.49.