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Xerox spikes nearly 20 percent after Conduent spinoff

Xerox
Tony Avelar | Bloomberg | Getty Images

Shares of Xerox spiked nearly 20 percent Tuesday after the company completed its spinoff of Conduent, the enterprise technology company's business services unit.

Xerox said in a news release the spinoff will allow it to focus "on growing its global leadership in digital print technology and services."

Following the announcement, Credit Suisse upgraded Xerox to "outperform" from "neutral ." The firm predicted the stock will climb 39 percent over the next year. Other firms also updated their outlook on the stock after the company finalized the split.

"Today is an historic day for Xerox. The successful completion of the separation sharpens our market focus and commitment to our customers," Xerox CEO Jeff Jacobson said in a news release.

Jacobson became CEO of Xerox immediately after Conduent was spun off on Tuesday. The company's former CEO, Ursula Burns, has transitioned into her new position as chairman of the board for Xerox.

Conduent CEO Ashok Vemuri told CNBC's "Squawk on the Street" earlier Tuesday that the move will allow Conduent to focus on things that are important for "a services company" without having to work within the construct of "a hardware or manufacturing or document technology company."

Conduent's stock fell nearly 8 percent on Tuesday.