UPDATE: JPMorgan Downgrades Xerox (XRX) to Underweight

July 24, 2020 4:14 AM EDT
Get Alerts XRX Hot Sheet
Price: $24.02 -1.07%

Rating Summary:
    6 Buy, 7 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 11 | New: 8
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(Updated - July 24, 2020 5:03 AM EDT)

(updating comment)

JPMorgan analyst Paul Coster downgraded Xerox (NYSE: XRX) from Neutral to Underweight with a price target of $20.00 (from $23.00).

The analyst comments "XRX is trading at ~3.8x times our CY21 PF EBITDA estimate, and 7x forward P/E. These are trough level multiples, a discount to the peer group, implying that the stock is currently undervalued. That said, the firm faces secular challenges, disruption from COVID-19 and its ability to execute M&A seems constrained for now, so the equity story lacks catalysts. We are downgrading to Underweight on lack of catalysts, meaning we expect the stock to underperform the mean of our coverage in the next 6 - 12 months, but this is not a call to short the stock given trough-level valuation."

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 $16.81 yesterday.

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