Citi Initiates Coverage on Xerox Holdings Corporation (XRX)

Xerox Holdings Corporation (NASDAQ:XRX) is included in our list of the 10 Most Oversold AI Stocks to Buy Now.

Citi Initiates Coverage on Xerox Holdings Corporation (XRX)

A technician installing a barcode printer at a point of sale system in a retail store.

On August 18, 2025, Citi initiated coverage on Xerox Holdings Corporation (NASDAQ:XRX) with a ‘Hold’ rating. This rating comes amid the company’s ongoing efforts to navigate restructuring and cost-cutting measures, following continuous declines in its core print business. Meanwhile, its acquisitions, including ITsavvy and the integration of Lexmark, hold strong potential. However, revenue growth from these acquisitions has yet to materialize, softening free cash flow expectations.

At the same time, the analyst highlighted Xerox Holdings Corporation (NASDAQ:XRX)’s execution risks, which remain heightened following the recent Chief Operating Officer (COO) departure. Thus, Citi believes clear progress in strategic initiatives is needed.

Xerox Holdings Corporation (NASDAQ:XRX) is a known leader in office and production technology and related solutions. It is included in our list of the most oversold stocks.

While we acknowledge the potential of XRX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XRX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.