After Xerox (XRX) announced a definitive agreement to acquire Lexmark for $1.5B, JPMorgan said the deal will enhance Xerox financials on a theoretical basis even before synergies and represents “a solid combination in theory” as Lexmark “appears on the surface to be the acquisition of a better managed company in Core Print and with more attractive exposure to growth markets and better channel presence.” However, the acquisition will “raise many questions when put in context of the recent challenges and strategic actions taken by Xerox recently over the last couple of years,” argues the analyst, who remains cautious around expectations of delivering to targets and keeps an Underweight rating on Xerox shares.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on XRX:
- Nordstrom family to take chain private: Morning Buzz
- M&A News: Xerox (NASDAQ:XRX) Will Acquire Lexmark for $1.5B
- Morning Movers: Despegar surges following deal to be acquired by Prosus
- Xerox confirms agreement to acquire Lexmark International in $1.5B deal
- Xerox to acquire Lexmark International in deal valued at $1.5B
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
