UPDATE: Credit Suisse Starts Xerox (XRX), ACS Was A Good Buy

Credit Suisse initiated coverage on shares of Xerox (NYSE: XRX) today with a Neutral rating and $12 price target. The firm has a muted outlook on shares of XRX following their acquisition of ACS. They believe that it was a good move for the company as it positions them in a faster growing market.

The firm reports that their Global Services demand model shows that when compared to GDP, hardware/software sales, and corporate profits; IT services are being under consumed by the global economy. They feel that this will drive accelerating revenue growth in the coming years.

The company's process management should experience faster growth as it is currently 52% of the company's service segment revenue, but their hardware maintenance is expected to experience slower growth and makes up 13% of total Service segment revenue. Their service segment accounts for 45% of the company's total revenue.

For more ratings news on Xerox click here and for the rating history of Xerox click here.

Shares of Xerox closed at $9.87 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform
• ICICI Securities Resumes Oberoi Realty Ltd (OBER:IN) at Buy (1)
• Fiserv (FISV) PT Lowered to $60 at Freedom Broker