- Yesterday, Xerox (XRX -3.7%) dropped its hostile takeover bid for HP (HPQ -8.0%). Analysts aren't surprised.
- Morgan Stanley says XRX investors will now focus on its "path to revenue stabilization, which we believe will be difficult to achieve in the near-to-medium term."
- The firm expects HP to hold off on large-scale buybacks until after the April quarter earnings.
- Evercore thinks HP could reduce its buyback program but still thinks the "momentum will be sizable."