UBS Reiterates Buy on Hewlett-Packard (HPQ) Following Analyst Meeting

UBS reiterated a Buy rating and $36.00 price target on Hewlett-Packard (NYSE: HPQ) following the company's analyst meeting. HPQ sees F16 combined EPS in range of $3.52-3.72, about flat from F15 and roughly as expected.

Analyst Steven Milunovich commented, "Our conclusions from the company's analysts' meeting are (1) the expected F16 combined EPS range of $3.52-3.72 is a bit lower than our $3.70 estimate but about flat from F15 and roughly as expected; (2) F16 combined FCF of $4.5-5.0bn is below our $5.5bn view due to currency and charges, but normalized FCF of almost $7bn is on our estimate and should get investor attention; (3) HPE looks like the better-performing business near term, but HP Inc seems more promising to us long term; and (4) putting a P/E of 10x on each business yields $36 per share, which is our price target ($19 HPE +$17 HPI)."

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 $11.33 yesterday.

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