Goldman Initiates Coverage On Xerox At Neutral

Goldman Sachs has published a research report on Xerox Corporation (NYSE: XRX) and has initiated coverage on the company at Neutral.

In the report, Goldman writes "We believe the company's diversification into the services market was a wise strategic move, and we believe it should provide an important counterbalance to the secular challenges in the high-end imaging market. In this midst of this near-term transition, however, we expect Xerox's stock to perform in line with the peer group average. The core Xerox story, before ACS, was generally one that centered on fairly limited imaging growth. Nevertheless, we believe Xerox's ACS acquisition provided it with a new avenue of growth and an important counter-weight to the secular risks in the core imaging business. Despite this view, we believe the company's expectation for steadily improving revenue growth in both imaging and ACS is overly optimistic."

Goldman has also issued a $12 price target on Xerox., which closed Friday at $12.00.