Home / Today's Top Stories / Xerox stock jumps
on rating upgrade

Xerox stock jumps
on rating upgrade

Xerox Corp. stock rose today on news that Cowen & Co. raised its rating on the copier firm from neutral to strong buy.
By mid-afternoon, Xerox shares were trading at $52.63; they closed at $52.75, up 2.4 percent from the $51.50 they fetched at Friday’s closing bell.
Cowen also raised Xerox’s fourth-quarter earnings forecast from
$1.15 a share to $1.18 a share and its 1996 earnings forecast for the
company to $3.30 a share from $3.25.
Today’s share-price increase follows a plunge in Xerox’s
stock price after the firm released disappointing third-quarter numbers
in October.
The company then announced primary earnings of $250 million for the period ended Sept. 30. Earnings for the comparable period a year earlier were $256 million.
Analysts gave the numbers mixed reviews. Some downgraded Xerox ratings, while others held firm.
Xerox itself blamed the showing on high selling, general and administrative expenses coupled with relatively weak sales in its core, black-and-white copier business. Chairman and CEO Paul Allaire acknowledged that the third-quarter was below par, but predicted an upswing in 1997.
Cowan today also boosted its 1997 earnings estimates for Xerox, predicting earnings of $3.80 a share–10 cents higher than its previous call.
Following the third-quarter showing, Xerox stock–previously selling for more than $55 a share–dipped below the $50 mark.
A bright spot in the generally dim third-quarter picture was double-digit growth in enterprise printing products. Last month, Xerox announced price increases in enterprise printing lines.

Xerox stock jumps
on rating upgrade

Xerox Corp. stock rose today on news that Cowen & Co. raised its rating on the copier firm from neutral to strong buy.
By mid-afternoon, Xerox shares were trading at $52.63; they closed at $52.75, up 2.4 percent from the $51.50 they fetched at Friday’s closing bell.
Cowen also raised Xerox’s fourth-quarter earnings forecast from
$1.15 a share to $1.18 a share and its 1996 earnings forecast for the
company to $3.30 a share from $3.25.
Today’s share-price increase follows a plunge in Xerox’s
stock price after the firm released disappointing third-quarter numbers
in October.
The company then announced primary earnings of $250 million for the period ended Sept.

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