Morgan Stanley analyst Katy Huberty resumed coverage of Xerox (XRX) with an Equal Weight rating and $34 price target. Xerox is in the early innings of a business model transformation and revenue stabilization is taking longer than expected, said Huberty, who adds that she agrees with the market implied view that the company is unlikely to return to constant currency revenue growth by calendar 2021. While We she is "generally constructive" on the prospect of print industry consolidation, Huberty doesn't believe Xerox's $22 per share offer for HP Inc. (HPQ) seems rich enough to persuade HP's board or shareholders. While she thinks Xerox could hypothetically raise its offer for HP up to $26 per share, which is closer to the level at which she thinks HP might be willing to engage, Huberty also thinks Xerox "faces risks on both sides of the coin in pursuing a deal for HP," she tells investors.

In the firm's Q1 letter to investors, David Einhorn's Greenlight Capital disclosed new long positions taken during the quarter, including taking stakes in HP Inc. (HPQ), Penn Entertainment (PENN) and Roivant Sciences (ROIV). In the letter, the firm stated that it established a new "medium-sized position" in Penn at an average price of $22.69 per share, arguing that "were the market to credit PENN with merely 15% of DraftKings' value, [Penn's ESPN BET] segment alone would be worth $20 per share." On HP Inc., Greenlight stated that it had established an initial position at an average price of $30.76 per share, adding that it believes "that we are, at a minimum, on the cusp of a normal PC refresh cycle, which should drive earnings above estimates." On Roivant, Greenlight said it had established a "small long position," adding that "in addition to an exciting pipeline, ROIV has a strong track record of positive trial results and successful monetization of pharmaceutical assets." Einhorn's Greenlight Capital also noted that it reduced its Teck Resources (TECK) long position into strength during Q1 and that the firm bought a "small position" in Liberty Global (LBTYA) during Q1.

Ferrari (RACE) announces that Ferrari S.p.A. has signed a multiyear partnership agreement with HP Inc. (HPQ), through which its brand will appear on racing properties of Scuderia Ferrari.

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Expects 2024 adjusted operating margin of at least 7.5%. Maintains three-year target of $300M of incremental adjusted operating income above 2023 levels and a return to double-digit adjusted operating income margin by 2026.