Barclays on IT Hardware: Is My Smartphone Now My Printer? Looking Into Challenges of Inkjet
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Price: $29.47 -1.57%
Rating Summary:
12 Buy, 23 Hold, 6 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
12 Buy, 23 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays on U.S. IT Hardware: Is My Smartphone Now My Printer? Looking Into Challenges of Inkjet.
Analyst, Ben A. Reitzes, said, "We believe that something is amiss in the inkjet printer industry and it's not just the economy. Our research and recent commentary from players like HP (NYSE: HPQ) fuel our view that inkjet printer sales are being negatively impacted by secular forces. We believe inkjets are likely being impacted by the overall weakness in PCs, which is exacerbated in the near term by HDD shortages. However, the bigger issue, in our opinion, is the rise of smartphones and tablets, which now house digital images and can act as printed pages - consumer pages once printed by inkjets."
Reitzes on overall industry: Sees FY12 year-over-year decline in inkjet of 3% (from drop of 1%)
On H-P: Cuts FY12 revenues from $121.37 bln to $121.18 bln and FY13 revs from $121.5 bln to $120.8 bln. FY12 EPS estimate cut from $4.03 to $3.99 and FY13 from $4.17 to $4.11. HP's price target also get cut from $27 to $25. (Maintains an Equalweight rating)
Reitzes thinks other companies/stocks in the industry, including Lexmark (NYSE: LXK) and Xerox (NYSE: XRX) are more insulated, citing a relatively larger mix in laser printers, which shouldn't face the same challenges as inkjets.
To see more ratings on HPQ, Click Here
Analyst, Ben A. Reitzes, said, "We believe that something is amiss in the inkjet printer industry and it's not just the economy. Our research and recent commentary from players like HP (NYSE: HPQ) fuel our view that inkjet printer sales are being negatively impacted by secular forces. We believe inkjets are likely being impacted by the overall weakness in PCs, which is exacerbated in the near term by HDD shortages. However, the bigger issue, in our opinion, is the rise of smartphones and tablets, which now house digital images and can act as printed pages - consumer pages once printed by inkjets."
Reitzes on overall industry: Sees FY12 year-over-year decline in inkjet of 3% (from drop of 1%)
On H-P: Cuts FY12 revenues from $121.37 bln to $121.18 bln and FY13 revs from $121.5 bln to $120.8 bln. FY12 EPS estimate cut from $4.03 to $3.99 and FY13 from $4.17 to $4.11. HP's price target also get cut from $27 to $25. (Maintains an Equalweight rating)
Reitzes thinks other companies/stocks in the industry, including Lexmark (NYSE: LXK) and Xerox (NYSE: XRX) are more insulated, citing a relatively larger mix in laser printers, which shouldn't face the same challenges as inkjets.
To see more ratings on HPQ, Click Here
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