Citi Starts Conduent (CNDT) at Buy

Citi initiates coverage on Conduent (NYSE: CNDT) with a Buy rating and a price target of $17.00.

Analyst Jim Suva comments "We initiate coverage on Conduent with a Buy and raise our Xerox target price post tax free separation which occurred in January 2017. Both stocks trade at a discount to peers as both companies have excess costs that will be removed thereby driving margins higher. Prior to separation, our rating on Xerox was Buy with a TP of $12 and post separation our TP on Xerox is $9 and Conduent is $17 (or $3.40 pre reverse 5:1 stock split) thereby showing consistency with our SOTP analysis and earnings models. Our Call – We believe the decision to separate allows each to be more independently focused & better able to execute to plan, as the prior Document Technology & Services businesses did not have meaningful business synergistic overlap. We believe both companies have excess costs that will be removed driving margins higher and allowing the valuation gap from peers to close."

For an analyst ratings summary and ratings history on Conduent click here. For more ratings news on Conduent click here.

Shares of Conduent closed at $14.82 yesterday.

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