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Wall Street likes the slimmer look of Xerox (XRX) - Get Xerox Holdings Corporation Report .

Xerox (XRX) - Get Xerox Holdings Corporation Reportstock surged on Tuesday on upgrades by both Credit Suisse and JPMorgan after the digital print technology company successfully completed the spinoff of its former business process services unit, Conduent (CNDT) - Get Conduent, Inc. Report.

Shares of Xerox closed at about $8.73 on Dec. 30, and were adjusted to $5.75 post-split. The stock was spiking about 15.7% to $6.66 in afternoon trading on Tuesday.

JPMorgan analyst Paul Coster said on Tuesday that the move "marks the start of a long turnaround process" at the Norwalk, Conn.-based Xerox. He upgraded the shares to "overweight" from "neutral" and raised his price target to $10.50 from $10 previously.

"Next up, we should see several constructive developments: a major DT product overhaul, expansion of the distribution channel, a tilt toward growth categories, and ongoing execution of the $1.5 billion productivity program," Coster wrote in a note to clients. While he noted that these initiatives won't reverse secular revenue decline, he added that they should help to lift margins, restore the company to roughly $900 million in annual cash flow by 2019 and support 10% dividend growth.

Credit Suisse's Kulbinder Garcha also upgraded Xerox stock to "outperform" from "neutral" this morning following the news, but lowered his price target on the shares to $8 from $10.

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He said that his upgrade is "taking into account a more focused print business, potential upside to cost savings, strong management and a well laid out long-term strategy to offset end market decline." The analyst forecasts that Xerox will generate standalone EPS of 89 cents and 90 cents in fiscal 2017 and 2018 respectively.

"We remain cautious about overall printing spend, but believe that management is realistic and has a long-term vision of moving the business away from mature declining markets to growth segments such as graphics and managed print services," Garcha noted. He added that shifting the company's business mix will help to stabilize revenues over the next few years, and called the new company "a better Xerox."

Xerox's CEO Jeff Jacobsen noted in a company statement that the move to separate from the Conduent business "sharpens our market focus and commitment to our customers."

On Dec. 31, Xerox shareholders received one share of Conduent common stock for every five shares of Xerox they held as of Dec. 15. Additionally, Xerox received a $1.8 billion cash transfer from Conduent in the spinoff. The company plans to use this cash to retire debt.

Conduent, meanwhile, began trading on the New York Stock Exchange on Tuesday "as the world's largest pure-play business process services leader." The stock was started at $15 per share, and slid about 7.4% to $13.90 in afternoon trading.

The company is based in Basking Ridge, N.J. and has approximately $6.7 billion in annual revenue.

"We have already begun laying the groundwork to drive profitable growth through sharpened go-to-market capabilities and greater consistency in applying our automation, analytics, innovation and expertise," CEO Ashok Vemuri said in a company statement. "Our significant transformation program will position our new company for long-term success."