Analyst Says HP (HPQ) Could Be Worth 88% More
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Price: $29.47 -1.57%
Rating Summary:
12 Buy, 23 Hold, 6 Sell
Rating Trend:
Down
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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Hewlett-Packard Company (NYSE: HPQ) is higher early Wednesday as a noted analyst see significant value in the beaten up name based on a 'sum-of-the-parts' basis.
Bernstein analyst Toni Sacconaghi sees a value of $29/share for HP, which suggests 88% upside from Tuesday's close. This compares to a $12/share 'sum-of-the-parts' for Dell (Nasdaq: DELL), suggesting just 11% upside.
That said, Sacconaghi doesn't see a breakup as imminent for either company.
He said the company has just 12-24 months to turn the ship around before the board or activist investors look for a break-up. A potential break-up could include a sale of the PC business, spin-out of the printer unit and HP keeping enterprise, services.
Shares of HPQ last traded at $15.68, up 1.9%. DELL is up 1.39%.
Bernstein analyst Toni Sacconaghi sees a value of $29/share for HP, which suggests 88% upside from Tuesday's close. This compares to a $12/share 'sum-of-the-parts' for Dell (Nasdaq: DELL), suggesting just 11% upside.
That said, Sacconaghi doesn't see a breakup as imminent for either company.
He said the company has just 12-24 months to turn the ship around before the board or activist investors look for a break-up. A potential break-up could include a sale of the PC business, spin-out of the printer unit and HP keeping enterprise, services.
Shares of HPQ last traded at $15.68, up 1.9%. DELL is up 1.39%.
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