Hewlett-Packard (HPQ) Issues Open Door for Guidance Software (GUID)

November 21, 2012 11:27 AM EST
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Price: $7.44 +4.79%

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    5 Buy, 1 Hold, 0 Sell

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    Up: 13 | Down: 22 | New: 54
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Yesterday investors learned of problems at Hewlett-Packard (NY: HPQ) over its acquisition of Autonomy software, which it says suffered from "serious accounting improprieties" and "outright misrepresentations".

While this has spelled trouble for Hewlett-Packard investors, analysts at Benchmark think it is an opportunity for investors in competitor Guidance Software (NASDAQ: GUID).

"Autonomy is GUID's principal competitor in the eDiscovery software sector and we suspect that Autonomy's accounting improprieties are likely to open up incremental opportunities for GUID over the next 12 months," said analyst Mark W. Schappel.

"In particular, GUID is likely to take advantage of mild distractions in Autonomy's sales force or from Autonomy customers freezing sales until the dust settles," added Schappel.

Benchmark has a Buy rating on Guidance Software (NASDAQ: GUID) with a price target of $14.00.

For an analyst ratings summary and ratings history on Guidance Software click here. For more ratings news on Guidance Software click here.

Shares of Guidance Software closed at $10.63 yesterday.

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