Barclays Maintains an 'Overweight' on Xerox (XRX); 3Q Better Than Expected Given Multiple Headwinds; Buybacks on Track

Barclays maintains an 'Overweight' on Xerox (NYSE: XRX) price target of $11.00.

Barclays analyst says, "Given concerns around the economy, the yen, and secular issues, we believe 3Q was better than anticipated - a solid 4Q guide and strong signings should allay some concerns. With the stock trading at about 5x forward FCF/share, we continue to believe valuation is attractive. Consensus estimates already put Xerox at the low end of its previous 2012 targets, which could still be achievable."

"For F4Q we estimate non-GAAP EPS of $0.33 (unchanged) based on 1.5% y/y revenue growth to $6.07B (was $6.11B), gross margin of 33.1% (was 33.3%) and operating margin of 11.1% (was 11.4%). For FY12 we estimate EPS of $1.21 (unchanged) based on 2% y/y revenue growth, gross margin of 33.3% (unchanged) and operating margin of 10.5% (was 10.6%). For FY13, we estimate EPS of $1.34 based on 3% y/y revenue growth, gross margin of 33.5% (unchanged) and operating margin of 11.0% (unchanged)."

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

Shares of Xerox closed at $8.02 yesterday.

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