Saturday, January 16

That’s Odd: Bearish XRX Analysts See 11.82% Upside

ETF Channel above

Recent XRX Analyst Ratings Breakdown
»Current1 Month Ago2 Month Ago3 Month Ago
Strong buy ratings:0000
Buy ratings:0000
Hold ratings:2332
Sell ratings:0000
Strong sell ratings:2111
Average rating:4.03.53.53.67

The average rating presented in the last row of the table above is from 1 to 5, where 1 would be a consensus Strong Buy and 5 would be a consensus Strong Sell. In the middle, 3 would be a Hold. So anything above 3 leans toward Sell as the average analyst sentiment. The average rating of 4.0 for XRX leans towards Sell, yet the XRX price target paints a different picture. Clearly, there is something more to the story here that is worth investigating for investors looking at Xerox Holdings Corp. Of course, the average price target is just that — a mathematical average, and is only one metric. There are analysts with lower targets than the average, including one looking for a price of $13.00. And then on the other side of the spectrum one analyst has a target as high as $20.00. The standard deviation is $3.109.

But the whole reason to look at the average in the first place is to tap into a “wisdom of crowds” effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes — much like with guessing the number of jelly beans in a jar, where the average guess tends to be very close. And so with XRX trading so far below that average target price of $17.50/share, the 11.82% upside to that average target does seem to be a paradox against the bearish analyst ratings. Might analysts be behind the curve with their targets and downward adjustments are forthcoming? Or, is it time for some of these analysts to turn bullish and upgrade? One thing is for sure: this apparent paradox makes for a good “signal” to investors in XRX to spend fresh time assessing the company and deciding whether analysts have it right with their.

Soure: Nasdaq

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