Despite Initial Selling Pressure, Some On Wall Street Like HP's (HPQ) Apotheker Move
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Price: $29.47 -1.57%
Rating Summary:
12 Buy, 23 Hold, 6 Sell
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Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
Rating Summary:
12 Buy, 23 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
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Hewlett-Packard Co. (NYSE: HPQ) announced Thursday that former chief executive officer of SAP (NYSE: SAP) Leo Apotheker will take over as HP's CEO and President. The stock has lagged on the back of the announcement.
Apotheker spent more than 20 years at SAP, where he was a driving force in making the company the largest business software applications provider in the world, while he expanded the company's business models and customer segments.
Apotheker was hired at HP after they dismissed Mark Hurd, who left the company amid a sexual harassment scandal and inaccuracies in the in HP's corporate expenses. Hurd is now serving as an executive with Oracle Corp. (NASDAQ: ORCL).
"Given HP's diversified products and services, its financial strength, and its leadership position across markets, no other company is as well positioned to drive – and profit from – the revolutionary changes under way in the marketplace," Apotheker said. "As we move forward, HP will continue to be a valued partner with our customers as well as a fierce competitor. I look forward to working with the outstanding people at HP to write the next chapter in the company’s long and proud history."
Janney Montgomery Scott analyst William Fearnley Jr. said Friday that the experience that Apotheker bring, added to the leadership that the executive already in place has, will be the strength of HP going forward.
“We believe his experience in the enterprise, customer and channel relationships (especially systems integrators) will help HP as it expands its enterprise and enterprise software footprints," Fearnley said.
Janney maintains a Buy rating on HP with a Fair Estimate Value of $56.00.
Shaw Wu, an analyst for Kaufman Bros., said that the firm is a buyer on the weakness of HP, believing the concern over the Apotheker appointment is overblown.
Early criticism is that Apotheker is not a household name but more importantly he is well known and regarded with Global 2000 accounts.
"We have long believed that HP needs to be more acquisitive in software and these appointments could signal a change in strategic direction," Wu said. "In addition, the company already has a deep set of expertise in hardware and services, so adding software experts makes a lot of sense, in our view."
Kaufman Maintains a Buy rating on HP with a Price Target of $53.00.
Shares of HP are down 2.92 percent to $40.84 in premarket trade on Friday.
Apotheker spent more than 20 years at SAP, where he was a driving force in making the company the largest business software applications provider in the world, while he expanded the company's business models and customer segments.
Apotheker was hired at HP after they dismissed Mark Hurd, who left the company amid a sexual harassment scandal and inaccuracies in the in HP's corporate expenses. Hurd is now serving as an executive with Oracle Corp. (NASDAQ: ORCL).
"Given HP's diversified products and services, its financial strength, and its leadership position across markets, no other company is as well positioned to drive – and profit from – the revolutionary changes under way in the marketplace," Apotheker said. "As we move forward, HP will continue to be a valued partner with our customers as well as a fierce competitor. I look forward to working with the outstanding people at HP to write the next chapter in the company’s long and proud history."
Janney Montgomery Scott analyst William Fearnley Jr. said Friday that the experience that Apotheker bring, added to the leadership that the executive already in place has, will be the strength of HP going forward.
“We believe his experience in the enterprise, customer and channel relationships (especially systems integrators) will help HP as it expands its enterprise and enterprise software footprints," Fearnley said.
Janney maintains a Buy rating on HP with a Fair Estimate Value of $56.00.
Shaw Wu, an analyst for Kaufman Bros., said that the firm is a buyer on the weakness of HP, believing the concern over the Apotheker appointment is overblown.
Early criticism is that Apotheker is not a household name but more importantly he is well known and regarded with Global 2000 accounts.
"We have long believed that HP needs to be more acquisitive in software and these appointments could signal a change in strategic direction," Wu said. "In addition, the company already has a deep set of expertise in hardware and services, so adding software experts makes a lot of sense, in our view."
Kaufman Maintains a Buy rating on HP with a Price Target of $53.00.
Shares of HP are down 2.92 percent to $40.84 in premarket trade on Friday.
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