Xerox initiated with a Sell at Citi

Citi analyst Asiya Merchant initiated coverage of Xerox with a Sell rating and $11 price target. The company is undergoing major restructuring in the face of flat-to-declining revenues, which is further compounded with a pivot to the specialized digital/IT services markets. The firm believes the pivot will require significant time and investments. Citi says it remains difficult for investors to have confidence in Xerox’s combination of continued restructuring and cost cutting while simultaneously refocusing the company on a fragmented, competitive, and spending-intensive services market. Xerox is “show me stock given the company’s many points of necessary execution,” Citi says.