With all the risks of acquisition of ACS, as XRX falls, it will become a compelling value uaround $5. However as long the overall market stays strong, we may not get an opportunity to buy below $5. Consider lightly scaling in if the stock falls further and aggressively adding below $5.
This recommendation is not based on potential synergies. Our analysis shows that the rationale behind the acquisition is deeply flawed. Our call is based on the deep valuation that may present itself due to the flawed acquisition.
