UBS Cuts Price Target on Hewlett-Packard (HPQ) to $36 Following 3Q15 Earnings
UBS maintained a Buy rating on Hewlett-Packard (NYSE: HPQ), and cut the price target to $36.00 (from $40.00), following the company's 3Q15 earnings report. HPQ reported revenue of $25.3B compared to the Street's $25.44B. EPS was reported at $0.88, beating Street's $0.85. F4Q guidance was lowered to $0.92-0.98.
Analyst Steven Milunovich commented, "HP reported decent results given the environment though lower F4Q guidance puts the full year at $3.59-3.65, below the previous high end at $3.73. Our sense is that investors have been thinking HP Inc might be the better play than HP Enterprise, but the fundamentals are going the other way with HPE showing revenue growth while PC and printer revenues show no improvement. It's all about guidance at the analyst day Sep 15 (join us for our bus tour before). The buy side appears to consider the sell-side consensus for combined EPS growth as optimistic; our FCF range is $5.5-6.0bn."
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Shares of Hewlett-Packard closed at $27.35 yesterday.