UBS Warburg upgraded its investment recommendation on shares of Xerox (XRX ) to buy from hold.
Analyst Benjamin Reitzes views Xerox as a compelling management change and liquidity stabilization near-term story. He says the appointment of Anne Mulcahy as CEO should be positive -- she is buying the stock and is making welcome changes. Reitzes adds that Xerox is set to make at least two more major moves to improve its cash position. He also says sources are indicating that the company is holding market share in the color copier segment, and is well-positioned to stabilize its share at the higher end of the market by year-end. News flow and momentum should also pick-up starting in September, according to the analyst.
Reitzes sees a $0.10 loss per share for Xerox in 2001, and EPS of $0.40 in 2002 and $0.90 in 2003. He set a $12 price target on the stock.