Hewlett-Packard (HPQ) Management Overstating Earnings Power - Goldman

On June 12th Hewlett-Packard (NYSE: HPQ) showcased its product portfolio and talked strategy at an event held in Las Vegas. In the view of Goldman Sachs analyst Bill Shope, the event demonstrated significant progress on strategy, but challenges remain.

"Overall, we were impressed with the innovation and strategic progress highlighted at HP Discover. Nevertheless, while there are pockets of impressive innovation at the company, we believe this is currently overwhelmed by the majority of the business that faces significant secular and competitive challenges," said Shope.

These problems are made worse due to years of underinvestment and management may be "overestimating HP's steady-state earnings power", added the analyst.

Goldman Sachs has a Sell rating on Hewlett-Packard with a price target of $17.00

For an analyst ratings summary and ratings history on Hewlett-Packard (NYSE: HPQ) click here. For more ratings news on Hewlett-Packard click here.

Shares of Hewlett-Packard closed at $24.91 yesterday.

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