BMO Capital Optimistic to See Growth from Xerox in 2013; Upgrades to “Outperform” (XRX)
Copier and printer maker Xerox Corporation (XRX) received an upgrade from BMO Capital on Monday, as the analysts believe the company is in a position to finally see share price appreciation after years of poor results.
The analyst upgraded XRX from “Market Perform” to “Outperform” and also boosted its price target from $9 to $10. The new target suggests a +26% upside to Friday’s closing price of $7.93.
BMO Capital analyst Keith Bachman commented, “After several years of inconsistent results, we believe that XRX can improve execution across a variety of metrics that can move the shares higher. We believe that positive y/y CC revenue growth, positive y/y growth in services signings, improving mix of services as a percentage of total revenue, stable or modestly improving operating margins, and more balanced capital allocation with a gradually growing dividend, can all lead to multiple expansion over the course of CY13.”
Xerox shares were up 15 cents, or +1.89%, during pre-market trading on Monday. The stock is up +0.63% over the past year.
The Bottom Line
Shares of Xerox (XRX) have a dividend yield of 2.14% based on Friday’s closing price of $7.93.
Xerox Corporation (XRX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.