Analyst sees little effect on HP from Xerox deal
NEW YORK — Kaufman Bros. analyst Shaw Wu doesn’t think the combination of Xerox Corp. and Affiliated Computer Services Inc. will be much of a competitive threat against Hewlett-Packard Co.
Xerox agreed to buy ACS on Monday for about $6.4 billion in cash and stock. The deal came a week after Dell Inc. said it would buy Perot Systems Corp. for $3.9 billion and a year after HP snapped up Electronic Data Systems Corp. for $13.9 billion.
Wu, who rates HP “Buy,” said he does not think the “competitive landscape changes much as neither company, as a standalone, was very effective against HP and we are not sure if coming together would change things.”
Xerox said the acquisition will combine its copiers, printers and document management services with ACS’s business process outsourcing services. Such services help companies manage payrolls or run health care plans, for example. This way, Xerox can expand its role in helping its customers run their businesses.
Wu said it’s not clear how much Xerox can get ACS to become more competitive in the printer space, where HP is a leader.
“Moreover, Xerox’s efforts in printers have been mixed despite its strong position in office copiers,” the analyst wrote, adding that this is because the buyers of copiers in a company is often different from the buyer of printers.
“Copiers are typically managed by facilities personnel who are also responsible for office supplies and the water cooler, whereas printers are procured and managed by the IT department,” the analyst wrote.
Wu raised his target price on HP to $54 from $50.
Shares of the Palo Alto, Calif.-based company fell 29 cents to $47.59 in afternoon trading.
Related News
Analyst upgrades shares of AK Steel to "Buy" from "Hold" and boosts earnings estimateOctober 9th, 2009 Analyst Note: AK Steel Holding shares upgradedNEW YORK — An analyst Friday upgraded AK Steel Holding Corp. shares, which recently have declined to the point where they offer an attractive value for investors.
Johnson & Johnson, Xerox, Abbott Labs, Applied Materials are among big market movers MondaySeptember 30th, 2009 Johnson & Johnson, Xerox, Abbott Labs big moversNEW YORK — The following stocks were among those that moved substantially or traded heavily Monday on the New York Stock Exchange:
NYSE:
Johnson & Johnson, up 65 cents at $61.27
The health care giant is jumping into the vaccine business by taking an 18 percent stake in Dutch biotechnology company Crucell NV. Accenture Ltd., up $1.77 at $37.89
A Wall Street analyst upgraded the consulting and outsourcing company to "Buy" and predicted improvement in its margins.
Xerox buying Affiliated Computer Services as printer company beefs up services businessSeptember 30th, 2009 Xerox to buy Affiliated Computer for $6.4 billionNEW YORK — Xerox Corp. has agreed to buy Affiliated Computer Services Inc.
Xerox joins race to boost tech offerings with $6 billion deal for Affiliated Computer ServicesSeptember 30th, 2009 Xerox in $6B deal to expand tech services businessNEW YORK — Xerox Corp. said Monday it will buy Affiliated Computer Services Inc.
Xerox buying Affiliated Computer Services, as printer company beefs up document mangement workSeptember 30th, 2009 Xerox to buy Affiliated Computer for $5.75 billionNEW YORK — Xerox Corp. has agreed to buy Affiliated Computer Services Inc.
Xerox to purchase Affiliated Computer Services in cash-and-stock deal valued at $5.75 billionSeptember 30th, 2009 Xerox to buy Affiliated Computer for $5.75BNEW YORK — Xerox Corp. has agreed to buy Affiliated Computer Services Inc.
JPMorgan analyst lifts Starwood price targets partly on costs control efforts, business mixSeptember 18th, 2009 JPMorgan analyst increases Starwood price targetNEW YORK — Solid cost control efforts and a strong business mix will work in Starwood Hotels & Resorts Worldwide Inc.'s favor as the lodging sector starts to emerge from the pressures of the recession, a JPMorgan analyst said Friday as he raised the hotel and leisure company's price target. Analyst Joseph Greff said in a client note that Starwood has managed its expenses well and done a better-than-expected job at cutting its selling, general and administrative and property-level expenses.
Analyst sees oil, gas prices benefiting McDermott, infrastructure helping URSSeptember 10th, 2009 Analyst: Oil, gas prices benefiting McDermottHARTFORD, Conn. — Rising oil and gas prices are expected to help drive business for engineering and construction company McDermott International Inc., an analyst said Thursday.
Analyst raises price target after big capital injection for KapStone Paper and PackagingAugust 26th, 2009 KapStone Paper and Packaging price target raisedNEW YORK — A big cash infusion that lifted the share price of KapStone Paper and Packaging Corp. led an analyst to raise his price target Tuesday on the company.
Analyst keeps Gymboree as top pick among children's apparel retailers, ups price targetAugust 19th, 2009 Analyst keeps Gymboree as a top pickNEW YORK — An analyst kept Gymboree Corp. as her top pick among children's apparel retailers Wednesday, saying the company has been able to capitalize on its promotions and looks to gain more ground with its new Crazy 8 stores.
UBS analyst raises rating on Coca-Cola Enterprises, sees gains from rival bottler dealAugust 13th, 2009 Analyst upgrades Coca-Cola Enterprises to 'Buy'NEW YORK — A UBS analyst upgraded shares of Coca-Cola Enterprises on Thursday and said the soft drink bottler will benefit from rival PepsiCo Inc.'s deal with its bottlers. UBS analyst Kaumil S.
Perrigo falls after analyst cuts rating to 'Neutral,' as shares are up 50 percent from lowsJuly 28th, 2009 Perrigo slips following Credit Suisse downgradeNEW YORK — Perrigo Co. shares dipped Tuesday after a Credit Suisse analyst downgraded the drugmaker's shares to "Neutral" from "Outperform."
Perrigo stock set an annual low of $18.54 on March 2, and as of Monday's closing price, is up 52.6 percent since that time.
Xerox to report 2nd-quarter results Thursday as technology budgets remain tightJuly 21st, 2009 Earnings Preview: Xerox to report 2Q earningsNEW YORK — Xerox Corp. is set to report earnings for the second quarter on Thursday ahead of the opening bell.
With a new printer, Xerox looks to cut the cost _ and waste _ out of colorMay 9th, 2009 Xerox looks to make color printing more affordableNEW YORK — The economics of color printing in many big offices are simple: A page of black and white costs about 2 cents per page, while color runs about 8 cents. That's one reason why only 15 percent of the 2.25 trillion pages printed worldwide each year are in color.
Xerox posts 1st-quarter profit, results meet lowered outlook the company issued last monthApril 24th, 2009 Xerox 1Q earnings meets revised outlookNEW YORK — Xerox posted a profit in the first quarter that met its revised guidance, which the company slashed last month due to restructuring costs and declining technology spending. The Norwalk, Conn.-based printer and copier maker said Friday that for the first quarter it earned $42 million, or 5 cents per share.
Loading ...