Collins Stewart Downgrades Hewlett-Packard (HPQ) to Neutral on Cloudy Outlook
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Price: $24.41 +14.98%
Rating Summary:
6 Buy, 21 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 23 | New: 29
Rating Summary:
6 Buy, 21 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 23 | New: 29
Trade HPQ Now!
Collins Stewart downgraded Hewlett-Packard (NYSE: HPQ) from Buy to Neutral. PT cut from $53 to $40.
Collins analyst says, We don’t like lowering our rating 12 months into a major share price decline, partly due to market conditions, partly due to operational execution, but we see the issues lingering for a few more quarters at best & don’t expect a near-term rebound in the shares. Thus, we felt it more appropriate to reduce our rating than continue to support an elongated turnaround effort. For F2Q HP rev was $31.6B vs. guide of $31.4B-$31.6B with EPS of $1.24 vs. Street $1.21. Larger than expected share buy-backs added ~$0.02 & lower interest/other exp was a $0.03 benefit. F3Q guidance was the concern at $31.1B-$31.3B vs. Street $31.8B & EPS of $1.08 vs. $1.23. FY11 rev guidance was lowered by $1.25B at the mid-point, & EPS to “at least $5.00” vs. prior $5.24."
For more ratings news on Hewlett-Packard click here and for the rating history of Hewlett-Packard click here.
Shares of Hewlett-Packard closed at $39.80 yesterday, with a 52 week range of $37.32-$49.39.
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Collins analyst says, We don’t like lowering our rating 12 months into a major share price decline, partly due to market conditions, partly due to operational execution, but we see the issues lingering for a few more quarters at best & don’t expect a near-term rebound in the shares. Thus, we felt it more appropriate to reduce our rating than continue to support an elongated turnaround effort. For F2Q HP rev was $31.6B vs. guide of $31.4B-$31.6B with EPS of $1.24 vs. Street $1.21. Larger than expected share buy-backs added ~$0.02 & lower interest/other exp was a $0.03 benefit. F3Q guidance was the concern at $31.1B-$31.3B vs. Street $31.8B & EPS of $1.08 vs. $1.23. FY11 rev guidance was lowered by $1.25B at the mid-point, & EPS to “at least $5.00” vs. prior $5.24."
For more ratings news on Hewlett-Packard click here and for the rating history of Hewlett-Packard click here.
Shares of Hewlett-Packard closed at $39.80 yesterday, with a 52 week range of $37.32-$49.39.
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