Analyst Says HP (HPQ) Could Be Worth 88% More

January 9, 2013 10:39 AM EST
Get Alerts HPQ Hot Sheet
Price: $14.67 -0.41%

Rating Summary:
    14 Buy, 22 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Hewlett-Packard Company (NYSE: HPQ) is higher early Wednesday as a noted analyst see significant value in the beaten up name based on a 'sum-of-the-parts' basis.

Bernstein analyst Toni Sacconaghi sees a value of $29/share for HP, which suggests 88% upside from Tuesday's close. This compares to a $12/share 'sum-of-the-parts' for Dell (Nasdaq: DELL), suggesting just 11% upside.

That said, Sacconaghi doesn't see a breakup as imminent for either company.

He said the company has just 12-24 months to turn the ship around before the board or activist investors look for a break-up. A potential break-up could include a sale of the PC business, spin-out of the printer unit and HP keeping enterprise, services.

Shares of HPQ last traded at $15.68, up 1.9%. DELL is up 1.39%.

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