- Xerox's strategic acquisition of Lexmark aims to boost its foothold in the print services market.
- Analysts estimate a significant upside potential for Xerox's stock from its current price level.
- GuruFocus metrics point to a promising long-term valuation for Xerox Holdings Corp.
Xerox (XRX, Financial) has successfully completed a strategic acquisition worth $1.5 billion, buying out Lexmark to enhance its competitive stance in the print services sector. Following this bold move, Xerox's stock experienced a 7% surge on Tuesday, even though it has faced a 33% decline year-to-date. The company predicts an impressive $240 million in cost synergies, expecting these to contribute an additional $1 per share to adjusted EPS over the next two years.
Wall Street Analysts Forecast
Delving into the forecasts from Wall Street, two analysts have set their one-year price targets for Xerox Holdings Corp (XRX, Financial). The average target price is pinpointed at $10.21, with projections ranging from a high of $14.91 to a low of $5.50. This average target underscores a potential upside of 80.94% from the current trading price of $5.64. For more detailed insights, visit the Xerox Holdings Corp (XRX) Forecast page.
The average brokerage recommendation for Xerox Holdings Corp (XRX, Financial), based on opinions from four brokerage firms, stands at 2.8, reflecting a "Hold" status. The rating scale spans from 1 to 5, where 1 indicates Strong Buy, and 5 represents a Sell.
GuruFocus Valuation Insights
According to GuruFocus estimates, the anticipated GF Value for Xerox Holdings Corp (XRX, Financial) over the next year is $17.76. This suggests a substantial upside of 214.89% from its current price of $5.64. GF Value is a proprietary metric by GuruFocus, reflecting the stock's fair trading value based on historical multiples, past business growth, and future performance projections. For a comprehensive analysis, visit the Xerox Holdings Corp (XRX) Summary page.
