Barclays Maintains an 'Overweight' on Xerox (XRX); Mixed 2Q - Buyback Intact, Cash Flow Cut

Barclays maintains an 'Overweight' on Xerox (NYSE: XRX) price target of $14.

Barclays analyst says, "We believe today's results are mixed for Xerox. On one hand, three months ago we thought Xerox may miss 2Q11 given issues in Japan - while XRX posted solid cost management and beat EPS. While we would have liked to have seen better signings and cash flow, we still believe XRX is attractive into a major buyback program...We are largely maintaining our EPS estimates for Xerox. For F3Q we estimate EPS of $0.25 (was $0.26) based on 3% y/y revenue growth to $5.6B (raised modestly) and gross margin of 33% (was 33.5%). For FY11 we now estimate EPS of $1.10 (was $1.08) based on 5.6% y/y revenue growth to $22.84B (was $22.72B). For FY12 we estimate EPS of $1.28 (unchanged) based on 4% y/y revenue growth to $23.7B. For FY13, we still estimate EPS of $1.42 based on 4% y/y revenue growth."

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

Shares of Xerox closed at $10.08 yesterday.

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