Conduent initiated with an Outperform at Noble Capital

Noble Capital analyst Patrick McCann initiated coverage of Conduent (CNDT) with an Outperform rating and $9 price target. The firm’s initial recommendation is based on a sum of the parts analysis, though it believes that the shares will eventually reflect the company’s “attractive ongoing businesses following its current rationalization and streamlining of its portfolio,” the analyst tells investors. Since spinning off from Xerox (XRX) in 2017, the company has sold several businesses, changed key members of the management team and simplified the business and while the transitional story is “not complete, there appears to be light at the end of the tunnel,” the analyst added.