Barclays Maintains an 'Equalweight' on Hewlett-Packard (HPQ); New CEO Resets the Bar for FY12; Some Concerns Around Printing Arise

Barclays maintains an 'Equalweight' on Hewlett-Packard (NYSE: HPQ) price target raised $2 to $27.00.

Barclays analyst says, "We were encouraged to see HP's new CEO Whitman reset the bar on earnings with what appears to be relatively conservative guidance for F1Q and FY12. However, we believe the earnings report also shed light on secular, competitive and execution related issues in printing and x86 servers, which bear watching. We believe concerns in these segments may temper some near-term optimism."

"For F1Q we now estimate non-GAAP EPS of $0.85 (was $1.02) based on a 4% y/y revenue decline to $30.9B (was $31.0B), gross margin of 22% (was 23.3%) and operating margin of 8% (was 9.4%). For FY12, our non-GAAP EPS estimate is now $4.05 (was $4.13) on a y/y revenue decline of 2% to $125.2B and gross margin of 23.1% (was 23.3%). For FY13 we continue to expect non-GAAP EPS of $4.23 (unchanged) now based on 1% y/y revenue growth to $126.8B (was $124.9B) and gross margin of 23.4% (was 23.6%)."

For an analyst ratings summary and ratings history on Hewlett-Packard click here. For more ratings news on Hewlett-Packard click here.

Shares of Hewlett-Packard closed at $26.86 yesterday.

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