Brean Capital Incremental More Positive on HP (HPQ) Following Analyst Event

Brean Capital analyst Ananda Baruah came away from Hewlett-Packard's (NYSE: HPQ) HP World Analyst Event incrementally net-positive.

"We attended HPQ’s HP World analyst event last evening and came away net positive in the context of our bullish view," Baruah said. " Specifically, we left believing that 1) there is room for ongoing L-T consolidation in PCs, Printing, Enterprise, and Services, 2) there is a lot more room for ongoing cost savings than the $1B in “clean sheeting” that HP identified on its earnings call, and 3) we gained our initial tangible appreciation for HP’s go-forward Enterprise solutions and Services strategy, which it views as differentiated given the construction of current Enterprise vendors (Cisco, Oracle, Microsoft, EMC, etc). Our $45 TP is 10.5-11x P/E (reasonable to inexpensive for a flat constant currency normalized grower, in our view) our normalized EPS of $4.00 - $4.25 after adjusting for separation related puts and takes."

The analyst also believes HP will hold an Analyst event in September to give a robust view on FY16 post-split.

The firm reiterated a Buy rating and price target of $45 on AVP.

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 $33.96 yesterday.

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