Xerox's Hold Rating: Navigating Restructuring Amidst Market Challenges and Execution RisksWe resume coverage of XRX with a Neutral/High Risk rating after a period of $4.50 target price. Our rating reflects ongoing restructuring, cost reductions, and declining core print trends, paired with efforts to ramp IT Services (ITsavvy acquisition) and accelerating Lexmark integration, which is, however, negatively impacting prior FCF expectations. While Lexmark facilitates increased penetration into APAC A4 (entry) and high-end markets, the IT Services segment remains small (~13% of total company revenue), and we await confirmation of meaningful revenue growth from cross-sell traction across the combined company. We remain wary of core print weakness (IDC pegs market at ~-3% CAGR through 2028). However, with the stock down 50% YTD and trading at 4x EV/EBITDA (30% discount to peers), we believe the above-mentioned negatives are priced in.