UPDATE: Piper Jaffray Initiates Xerox with Overweight on Company Transformation

In a report published Thursday, Piper Jaffray analyst George K. Tong initiated coverage on Xerox Corporation

with an Overweight rating and $12.00 price target. In the report, Tong noted, “The investment appeal of Xerox lies in its rapid transformation from a technology company in the printer business to a high growth, high margin outsourced services company. The catalyst driving this transformation is Xerox's successful entry into IT outsourcing and business process outsourcing, both of which have a favorable long-term outlook with mid-to-high single digit industry growth as companies continue to focus on cost, strive to improve business efficiency and scale to the latest technologies. We initiate coverage with an Overweight rating and a $12 price target.” Xerox Corporation closed on Wednesday at $8.78.