J.P. Morgan Reiterates Underweight Rating on Xerox Corporation

In a report published Friday, J.P. Morgan & Co. reiterated its Underweight rating on Xerox Corporation XRX. J.P. Morgan noted, “This morning, Xerox announced that Luca Maestri, EVP and CFO, is leaving the company to assume the role of corporate controller at Apple. Mr. Maestri will stay on at Xerox until February 28 to ensure a smooth transition to his successor. Xerox commented that an external search for a new CFO has been initiated. Separately, the company announced that it remains on track to meet its 4Q12 EPS guidance. While we expect news of the CFO departure to weigh on the stock, we believe the guidance affirmation is likely to provide a partial offset. Overall, we maintain our Underweight rating on Xerox. We remain cautious on imaging/printing stocks and need to see Xerox demonstrate improved cash flow metrics, which is likely deferred beyond the near term.” Xerox Corporation closed on Thursday at $7.29.