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Xerox - Solid Returns, Proof Of Value Post-Q1
Wolf Report · 2026-06-25 · via All Articles on Seeking Alpha

Summary

  • Xerox (XRX) remains a speculative 'BUY' with a reiterated $6/share price target, supported by strong turnaround progress and Lexmark synergies.
  • Q1'26 results confirmed revenue up 27%, tripled adjusted EBIT, and improved operating margin, validating the ongoing recovery thesis.
  • XRX continues to address debt, enhance free cash flow, and maintain liquidity, with recent opportunistic debt buybacks and a 3.18% dividend yield.
  • Despite a +50% rally, further upside is expected as the turnaround and synergies are not yet fully realized; bankruptcy risk remains minimal.
  • Looking for more investing ideas like this one? Get them exclusively at Wolf of Value. Learn More »
  • Sitewide Sale 2026: Get 20% Off
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Some investments you simply don't make when they are at the cheapest levels, despite the investment itself being considerably attractive. One of the investments I elected not to make in 2026, was Xerox (XRX), unfortunately. This is despite being positive

Analyst’s Disclosure: I/we have a beneficial long position in the shares of XRX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.