tiprankstipranks
Xerox Drops 7% As JPMorgan Cuts Stock To Sell
Market News

Xerox Drops 7% As JPMorgan Cuts Stock To Sell

Shares of Xerox (XRX) fell 6.9% on Friday after JPMorgan analyst Paul Coster downgraded the stock to Sell from Buy, as the coronavirus pandemic continues to weigh on its operations. Coster also cut the stock’s price target to $20 (28% upside potential) from $23.

In a research note to clients, Coster pointed out that the shift to work-from-home due to the pandemic is hurting new equipment sales. Xerox has a strong market share in the corporate copier market but the move from work-from-office is also affecting demand for the company’s printer business.

Due to the negative impact from the pandemic, Xerox’s first-quarter revenues and earnings declined nearly 17% and 77%, respectively year-over-year.

Coster said, “the stock looks attractively valued, but secular decline, COVID-19 disruption and strategic uncertainty makes it a difficult equity story to own right now.”

Overall, analysts have a cautiously optimistic Moderate Buy stock consensus. Given this year’s sharp share decline of over 57%, the average analyst price target of $21.50 implies upside potential of 37.4% from current levels. (See Xerox’s stock analysis on TipRanks).

Related News:
Apple Drops 4.6% After Bearish Comments From One Top Analyst
Kohl’s Drops 4% on UBS Downgrade
Morgan Stanley Upgrades Coca Cola On Its Compelling Valuation

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles