Piper Jaffray Remains Bullish on Xerox Corp. (XRX) Following Market Correction

Piper Jaffray reiterated an Overweight rating and $15.00 price target on Xerox (NYSE: XRX) following the recent market correction. Analyst George Tong finds valuations for Xerox attractive, given favorable progress in the company’s transformation from a document technology provider to an outsourcing services leader. Services at Xerox have increased in revenue mix from 23% in 2009 to 54% in 2014, and Tong anticipates that mix will reach 65% by 2017.

Tong commented, "We are buyers of Xerox following the recent market correction and identification of catalysts for services revenue growth acceleration and services margin expansion over the next 2-4 quarters. We see Xerox’s transformation from a document technology company to an outsourcing services leader as a powerful catalyst for the shares, contributing to earnings growth acceleration and valuation multiple expansion. Reiterate Overweight and $15 price target."

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 $10.23 yesterday.

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