Barclays Maintains an 'Overweight' on Xerox (XRX); Lowering Numbers, But Cash Flow Could Still Be Strong in 2012

Barclays maintains an 'Overweight' on Xerox (NYSE: XRX), price target lowered from $14 to $11.

Barclays analyst says, "We recently met with Xerox's CFO and the tone was constructive as he still seems confident in all of XRX's revenue & EPS targets. However, given economic realities, checks on macro demand trends & our analysis of high-end sales in past down cycles, we are taking the opportunity to cut our estimates...For 3Q we now estimate EPS of $0.24 (was $0.25) on 1.4% y/y revenue growth to $5.5B (was $5.6B). For FY11 we now estimate non-GAAP EPS of $1.07 (was $1.10) on 5% y/y revenue growth. Our 2012 EPS estimate is now $1.21 (was $1.28) on 3% y/y revenue growth and our FY13 EPS estimate is now $1.34 (was $1.42) 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 $7.99 yesterday.

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