NEW YORK (TheStreet) -- Xerox (XRX) was downgraded Monday to "market perform" from "outperform" by BMO Capital. The analyst firm maintained its $11.50 price target for the technology company.
Xerox fell 1.9% to $11.03 in early trading.
Analysts Keith Bachman, Jung Pak, and Gaurav Gupta wrote, "We upgraded XRX in January 2013, with valuation as a key catalyst, along with several others including improving services/technology mix, and FX/yen help. Not all of our views played out, but enough that the stock moved higher. However, we no longer see valuation as compelling. We think our estimates will have to move higher for the shares to move higher. We think our estimates are reasonable, with the most likely upside tension being share count and tax rate, which we don't see moving the stock higher."
Separately, TheStreet Ratings team rates XEROX CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate XEROX CORP (XRX) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations, notable return on equity, increase in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows: