NEW YORK (TheStreet) -- Xerox Corp (XRX) held its annual investor conference yesterday, updating progress on its strategy and diversified portfolio, leaving one analyst still uncomfortable with recommending its stock at current levels.
"While we like XRX's strategy, we are not comfortable recommending the stock at current levels relative to our $14.50 target price," BMO Capital Markets analyst Keith Bachman said.
"We retain our 'market perform' rating on XRX. With lower 2015 guidance, we think the opportunity to make estimates improves. XRX has generally made analyst EPS estimates, although it has not been as consistent making revenues estimates," Bachman said.
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"For the shares to push meaningfully higher, we think XRX has to make the long awaited $1.20 type of earnings level, which we think is think is possible for 2016," Bachman added.
"Increasingly, companies and governments are seeking partners to support essential processes - from document management to benefit administration. Xerox is well positioned to capture this opportunity as a result of our deep process expertise, global reach and innovation," Xerox CEO Ursula Burns said at the conference.
"We've also been diligent in identifying specific markets where we'll compete and we're seeing the benefits of this focus. Good examples are in transportation and healthcare," Burns added.
Shares of Xerox are down 0.22% to $13.49.