Needham & Company Starts Hewlett-Packard (HPQ) at Buy

Needham & Company initiates coverage on Hewlett-Packard (NYSE: HPQ) with a Buy rating and a price target of $14.50.

Analyst Richard Kugele commented, "While we acknowledge that HP's split leaves HP Inc. as two businesses facing muted growth/secular declines in their respective markets, we also believe this reality is more than reflected in the stock’s valuation, trading at just 7.3x our F16 estimates (vs. the peer group at 10.8x, even despite our conservative assumptions). Though a return to robust growth (both top and bottom line) will require much more than continued cost-cutting, we nonetheless find risk/reward attractive at current levels and initiate coverage with a Buy and $14.50 target based 8.5x C16E EPS."

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 $12.13 yesterday.

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