Morgan Stanley Starts Xerox (XRX) at Overweight

Morgan Stanley initiates coverage on Xerox (NYSE: XRX) with a Overweight rating and a price target of $9.00.

Analyst Jerry Liu expects XRX to increase focus on improved operating efficiencies and take on a shift to growth segments with in printing.

He comments "The company has already slowed its revenue decline from 10% in 2015 to 6% in 2016. We model steady improvements to -1% by 2020, as Xerox's product mix shifts towards areas of growth: color, production, managed print services (MPS), and workflow software. 3/4 of the company's revenues are annuitized, higher than many competitors, given its large exposure to copiers and MPS (which has mid- 80% renewal rates) yet XRX trades at a lower multiple than closest peer HPQ

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 $7.00 yesterday.

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