Xerox guidance brings more questions and concerns, says Citi

Citi analyst Jim Suva has more questions and concerns after diving into the details for the outlook for Xerox. The 2023 free cash flow guidance of $500M appears to be materially increased by Xerox’s net benefit of its recently signed receivables funding agreement, the analyst tells investors in a research note. The firm believes this is a large one-year increase which is not sustainable in future years. It is also "disappointed" with the company’s 2023 revenue guidance for revenue growth of flat-to-down low single digits. Citi keeps a Sell rating on Xerox with a $10 price target.