The printing and digital document products and services provider Xerox Holdings (XRX) revealed the acquisition of document solutions provider Document Systems in an effort to increase its presence in the U.S. small and midsize business (SMB) market. Transaction terms remained undisclosed.
Joanne Collins Smee, Chief Commercial, SMB, and Channels Officer at Xerox said, “We are focused on strengthening our U.S. SMB market reach through the combined power of our portfolio of workplace solutions for SMBs and well-established local technology providers.” (See Xerox stock analysis on TipRanks)
Smee added, “As part of Xerox Business Solutions (XBS), Document Systems’ document management expertise will help us elevate the customer experience, improve productivity and power growth for SMBs.”
According to Xerox’s State and Fate of Small and Medium Business survey, SMBs are looking at automation, digitization, and security to come out in better shape from the COVID-19 pandemic. Notably, 85% are more dependent on communication technologies, remote IT support, and security hardware and software than ever before.
Recently, Citigroup analyst Jim Suva reiterated a Sell rating on the stock and increased the price target to $16 (33.3% downside potential) from $13.
Suva noted that Xerox is making positive changes in its three separate businesses and foresees growth in providing services for full IT support to SMBs.
The other analyst covering the stock, Loop Capital Markets’ Ananda Baruah has a Hold rating on the stock with a $24 price target.
The two ratings add up to a Moderate Sell consensus rating alongside a $20 price target implying 16.6% downside potential.
Shares have gained about 6.8% so far this year.
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