Wells Fargo Maintains a 'Market Perform' on Hewlett-Packard (HPQ); One Less Inkjet Competitor In a Shrinking Market

Wells Fargo maintains a 'Market Perform' on Hewlett-Packard (NYSE: HPQ) price target range of $18-21.

Analyst, Maynard Um, said, "...The overall inkjet market in Q2 declined nearly 13%
year over year, according to IDC. Lexmark’s (NYSE: LXK) "rip the band aid off" approach, while creating greater near-term revenue headwinds than a more gradual winddown, should result in a cleaner slate sooner from which to grow. While weakness in HP’s consumer inkjet business is not new & HP’s dominant market share provides it some scale advantage relative to Lexmark, Lexmark’s actions will likely raise questions as to whether being in the inkjet business will continue to generate sufficient returns in the future as the market continues to shrink. Once Lexmark is out of the channel, any share gains should be only modestly beneficial to HP to offset the declining market."

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 $17.21 yesterday.

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