RBC Sees Some Positives from HP's (HPQ) Q3 Report, but Thinks More is Needed
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
RBC Capital affirms its Sector Perform rating and $14 price target on HP, Inc. (NYSE: HPQ) following Q3 results on Wednesday.
Analyst Amit Daryanani commented,
HPQ reported a strong Jul-qtr print but guided down Oct-qtr and tempered FCF expectations for Oct-qtr as well. Fundamentally, we see HPQ struggling on both the PC and Printing fronts, with PCs likely to see a confluence of cyclical and secular challenges in Oct-qtr (expect downtick q/q) and Printing going through a business model change that could result in a lower market share (while we still await benefits from the positive NPV hardware units driving some stability within supplies).
We expect HPQ stock to move in sync with its FCF generation, which we suspect may remain challenged over the next two quarters given: 1) Oct-qtr headwind from mix and inventory pre-buy; and 2) Jan-qtr is seasonally a negative FCF quarter.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- MKM Partners Raises Price Target on Finisar (FNSR) to $43 Following 2Q
- Jefferies Raises Price Target on Casey's General Stores (CASY) Following 2Q Earnings Report
- Jefferies Raises Price Target on Finisar (FNSR) to $37 Following 2Q Beat and Raise
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Related EntitiesRBC Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!