Still Not Time to Buy HP (HPQ) - BMO Capital
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Price: $24.30 -2.25%
Rating Summary:
6 Buy, 21 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 17 | New: 13
Rating Summary:
6 Buy, 21 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 17 | New: 13
Trade HPQ Now!
Despite the massive sell-off in Hewlett-Packard (NYSE: HPQ) Tuesday amid the disclosure of the Autonomy accounting fraud, which came along with decent Q4 results and lackluster Q1 guidance, BMO Capital analysts Keith Bachman is not biting.
On the quarter, the analyst notes operating and free cash flows of $4.1 billion and $3.5 billion were much better than their forecast, margins in both the PC and Enterprise businesses were substantially lower than their and Street estimates. On services, while HPQ indicated better signings in certain businesses, the firm thinks that margin improvement would require better execution on existing and new projects.
Bachman said HP is not doing any favors for itself by maintaining its FY2013 EPS guidance range of $3.40-$3.60 despite a very weak 1QFY13 guide. "We think that it is difficult for us and investors to feel confident about the FY2013 guidance range given persistent top-line and margin challenges across all of HPQ's businesses," the analyst said.
The analyst maintains a Market Perform rating price target of $18.00.
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 $13.30 yesterday, with a 52 week range of $12.36-$30.00.
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On the quarter, the analyst notes operating and free cash flows of $4.1 billion and $3.5 billion were much better than their forecast, margins in both the PC and Enterprise businesses were substantially lower than their and Street estimates. On services, while HPQ indicated better signings in certain businesses, the firm thinks that margin improvement would require better execution on existing and new projects.
Bachman said HP is not doing any favors for itself by maintaining its FY2013 EPS guidance range of $3.40-$3.60 despite a very weak 1QFY13 guide. "We think that it is difficult for us and investors to feel confident about the FY2013 guidance range given persistent top-line and margin challenges across all of HPQ's businesses," the analyst said.
The analyst maintains a Market Perform rating price target of $18.00.
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 $13.30 yesterday, with a 52 week range of $12.36-$30.00.
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