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Needham & Company Downgrades HP, Inc. (HPQ) to Hold

November 25, 2015 7:33 AM EST
Get Alerts HPQ Hot Sheet
Price: $29.94 -1.58%

Rating Summary:
    16 Buy, 20 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 2 | New: 35
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Needham & Company downgraded HP, Inc. (NYSE: HPQ) from Buy to Hold, saying incremental pressures limit upside.

Analyst David Rold commented, "Our upgrade on 11/2 was predicated on the notion that valuation (then having closed in the low/mid $12 range trading at a steep discount to peers) was compelling enough to outweigh even known headwinds facing both PC's and Printing, especially given the attractiveness of a 3-4% dividend yield. However, as some of the valuation argument has played out, we believe further upside will require real improvement in the underlying business. The sharp turn of the Printing market (and delay in improvement that results) in just 2-3 months since last speaking with the Street warrants caution given the segment's roughly 80% contribution to operating profit dollars. With the stock in the aftermarket under 10% from our previous PT of $14.50 and little justification for higher estimates, we downgrade to Hold from Buy."

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 $14.64 yesterday.



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