UPDATE: Citi Color On XRX Target Decrease

Citi, which lowered its PT on shares of Xerox Corp. (NYSE: XRX), is providing some color on the stock.

“While we are bringing our above-consensus FY11 revenue and EPS estimates in-line with consensus to reflect Japan-related disruption and slightly weaker page growth, we continue to expect 15-17% growth in non-GAAP EPS during FY11 and FY12. At just 9X our revised FTM EPS estimate with a 14% FCF yield, we continue to view valuation as compelling, and therefore view Thursday's 6% pull-back as a compelling buying opportunity,” Citi writes. “Our revised target—which we believe is based on conservative P/E and DCF assumptions implies 27% upside from current levels.”

Xerox closed Thursday at $10.22.