Cantor Fitzgerald Maintains Hold on Hewlett-Packard (HPQ) Following Q2; Sees 'Limited Upside' in HP's stock
Cantor Fitzgerald maintains a Hold rating on Hewlett-Packard (NYSE: HPQ), and cut the price target to $33.00 (from $35.00), following mixed 2Q results. Analyst Brian White said that EPS is poised to fall in FY2015.
White commented on HP, saying, "HP reported 2Q:FY15 results (ended April) that fell short of our estimates, and provided a weak 3Q:FY15 EPS outlook, supporting our cautious view on the company and we are reducing our price target to $33.00 (from $35.00). We found few bright spots in this earnings report with nearly all market segments falling short of our projections and we are cutting our FY:15 EPS estimate accordingly. That said, we continue to believe the separation of HP into two companies makes sense and we like today's announcement around the creation of the "New H3C". Trading at over 9x our CY:16 EPS estimate and in line with historical averages in a difficult IT spending environment with a challenged portfolio, we see limited upside in HP's stock."
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Shares of Hewlett-Packard closed at $33.83 yesterday.