Xerox (XRX) a Compelling 'Old Tech' Play on Sector Rotation, Piper Jaffray Says

Piper Jaffray analyst George Tong highlighted Xerox (NYSE: XRX) Monday, saying the stock as an appealing opportunity in the current risk-off market. The firm reiterated an Overweight rating price target of $14 on the name.

Kong said, "With investor rotation out of high-multiple "new tech" stocks, we highlight Xerox as an "old tech" play transforming into a services name and generating intriguing upside potential in the process. Investors have clearly shifted away from speculative names trading at unreasonable price-to-sales or price-to-concept multiples in favor of companies grounded in sound fundamentals with reasonable valuations. We view Xerox as one such company trading at 9x 2015 P/E, 5.5x 2015 EV/EBITDA and, notably, a 10% FCF yield. We view Xerox's quiet transformation from a printer technology company to an outsourcing services leader as a powerful catalyst for the shares."

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 $11.06 yesterday.

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