Xerox Corp (XRX) Pops on Barron’s ‘Restart Button’ Article

Advertisement

Xerox Corp (NYSE:XRX) stock was up on Monday following the release of a Barron’s article about the company.

Xerox Corp, XRX, Barron's

The Barron’s article claims that Xerox Corp has hit the “restart button” by spinning off its unprofitable businesses as Conduent Inc (NYSE:CNDT). This may allow the company to return to growth after years of revenue declines.

Without the Conduent Inc businesses holding it back, it is possible that Xerox Corp can start its journey toward long-term growth. ValueWorks analyst Charles Lemonides told Barron’s that XRX stock may double to $14 per share in the next two years. He also points out that shareholders are getting 3.4% dividend yield from the stock.

Barron’s also draws comparisons between Hewlett-Packard and Xerox Corp. The company split into HP Inc (NYSE:HPQ) and Hewlett Packard Enterprise Co (NYSE:HPE) over a year ago. Since then, the companies have benefited from lower valuation and a more focused approach to business. It is possible that the same will happen with XRX now that the Conduent Inc spinoff is complete.

The Barron’s article also notes that there is another positive aspect for Xerox Corp. This is the 10% stake that activist investor Carl Icahn has in the company. Icahn pressured the company to go through with the Conduent Inc spinoff and his presence will likely keep XRX looking toward investors.

Xerox Corp last reported earnings on Jan. 31, 2017. Its earnings per share for the quarter matched Wall Street’s estimates, despite a decline from the same time last year. XRX said in this earnings report that it still plans to suffer from restructuring costs in 2017 due to the spinoff of Conduent Inc.

XRX stock was up 2% as of Monday afternoon, but is down 13% year-to-date.


Article printed from InvestorPlace Media, https://investorplace.com/2017/03/xerox-corp-barrons-xrx/.

©2024 InvestorPlace Media, LLC