...- We expect U.S.-based printer technology and services company Xerox Holdings Corp. to continue improving EBITDA margins in 2024 due to the exit from unprofitable non-core activities and restructuring initiatives under its 'Reinvention' transformation plan. However, we believe the significant scope of the plan and secular print industry demand headwinds could lead to material execution risks for the company to stabilize its long-term revenue declines and return to growth, making it possible to avoid further actions in the future. - Furthermore, we note that reported free operating cash flow (FOCF) of about $650 million in 2023 was primarily driven by a $614 million decrease in its finance receivable portfolio due to its arrangement with an affiliate of HPS Investment Partners to finance new leases. This led to core FOCF (excluding this benefit) in 2023 being a lot less than our previous expectation of about $400 million, though we expect EBITDA growth to improve it to at least $200 million...
