Citi downgrades Xerox to sell

1307 ET - Xerox will have to execute against a challenging backdrop in the print market if it wants to reach sustainable revenue growth and stronger core free cash flow, Citi analysts write in a note, downgrading the stock to sell. Though the company has made progress on integrating its acquisition of Lexmark, they write, that acquisition and other management efforts may not be sufficient to offset pressures in the cash generation of Xerox's core business. "Until Xerox demonstrates sustained organic revenue stabilization alongside margin expansion, stronger normalized FCF and meaningful deleveraging, we see an unfavorable risk/reward, supporting our Sell rating," the analysts write. Shares fall 6.8% to $2.72. (elias.schisgall@wsj.com) (END) Dow Jones Newswires October 09, 2026 13:07 ET (17:07 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.