Gabelli Has Buy on Xerox

Gabelli & Co. is out with a research report on Xerox (NYSE: XRX) and it has a Buy rating on shares.

In a note to clients, Gabelli & Co. writes, "We are raising our 2011 EPS estimate to $1.09 from $1.04, and lowering our 2012 estimate to $1.17 from $1.23. We adjusted our estimate to account for historical seasonality of sequential decline in 3Q and concern on enterprise spending due to the global macroeconomic concern. We also estimate California Medicaid contract will generate $40 million of BPO revenue."

Shares of XRX closed at $7.54 yesterday.