Xerox Corp. (XRX): Strategy Becoming Clearer But Too Early For Results - Brean Capital

Brean Capital analyst, Ananda Baruah, reiterated his Hold on Xerox (NYSE: XRX) but noted that the post split strategy is getting clearer. The Head of Printing, Jeff Jacobson, was recently named CEO. The analyst believes the company XRX wants to become is a rev growth company (vs. current revenue declines of mid-single digits), and that (much like HP $14.01, Buy) management believes the overall focus and execution will be much improved strategically and operationally post-split.

XRX believes greater focus on the use of inside sales, channel sales, and targeted direct sales can help create normalized revenue growth. Additionally, increased focus will be on SMB (XRX has traditionally been more Enterprise focused) and an increased effort on Managed Print Services. Finally, XRX believes that the growth in digital color production will begin to net-positively vs. black & white production perhaps in '18. XRX continues to anticipate OM ramping thru the year as cost saves filter through, FX as a relief, and Supplies stabilize.

The analyst does not have a published price target due to the Hold rating.

For an analyst ratings summary and ratings history on Xerox click here. For more ratings news on Xerox click here.

Shares of Xerox closed at $10.30 yesterday.

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