Shares of Xerox Corp. sank 5% in premarket trade Monday, after the document management company's decision to drop its merger with Japan's Fujifilm Holdings Corp. prompted a downgrade at J.P. Morgan. Analyst Paul Coster cut his rating to neutral, after being at overweight since January 2017, saying the termination of the planned merger elevates near-term risks. "We think it is unlikely that the new board will find an alternative acquirer for Xerox in the next few months," Coster wrote in a note to clients. "In the meantime, we believe Xerox is at risk of losing key enterprise accounts, and execution risks are now elevated, particularly as they related to the [joint venture] with Fuji-Xerox." Xerox shares have gained 3.5% year to date through Friday, while Fujifilm's U.S.-listed shares have lost 5.1% and the S&P 500 has gained 2.0%.