Xerox Holdings Corp
XRX: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$22.00 | Xkybm | Bpb |
Biting Inflation Puts No-Moat Xerox’s Cashflows in a Jam; FVE Down to $13; Shares Fairly Valued
We are reducing our fair value estimate for no-moat Xerox to $13 from $18 as the firm posted a disappointing third quarter with a massive reduction in free cash flow guidance for 2022. In addition to bleak near-term macroeconomic conditions, we remain concerned about the long-term structural decline in the printing landscape as consumers and companies wean off paper usage. With shares down almost 20% after earnings, we view the stock as fairly valued.