Hewlett-Packard reported mixed Q2 results,beating estimates on earnings,or profit,but missing estimates on revenue,or sales.The PC group was particularly weak on revenue.They have to transform their business model,said David Pearl,Chief Investment Officer at Epoch Investments.It wants to look a little more like IBM.
The stock is very cheap,but they have a lot of transformation to do in their business.It's gonna be a multi-year process.
Shaw Wu,Senior Research Analyst at Sterne Agee,said we like this stock.We have a buy rating on it.They're actually very profitable.We think they're in the best position for a turnaround.They have about a 30% exposure to the PC market.Our price target for the stock is 33.00.
HP CEO Meg Whitman indicated they may sell some of their smaller businesses.They will defend their PC business by bringing down prices through bringing down the cost of making them.
HP is competing with China's Lenovo in the PC space.
Shaw Wu was recently ranked #2 for stock picking and #3 for accuracy by StarMine.He has a BS in Finance and Information Systems from New York University's Stern School of Business.Sterne Agee is a brokerage,advisory and trust company with offices nationwide.It was founded in 1901.
Hewlett-Packard(HPQ)
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