HP Com­pany ral­lies amid broad mar­ket sell off

The Pak Banker - - COMPANIES/BOSS -

SAN CO: Hewlett-Packard Com­pany (NYSE:HPQ) shares surged as much as 5% in Fri­day's trad­ing ses­sion, af­ter it dis­closed the fi­nan­cial re­sults for its sec­ond quar­ter of fi­nan­cial year 2016 (2QFY16). Sev­eral Wall Street an­a­lysts have weighed in on the PC-maker fol­low­ing its rel­a­tively weaker quar­terly per­for­mance.

An­a­lysts at Can­tor Fitzger­ald reaf­firmed a Hold rat­ing on the stock, and re­vised the tar­get price from $33 to $29. Can­tor Fitzger­ald has slashed its es­ti­mates pri­mar­ily be­cause of the weaker PC trends and in­creas­ing com­pe­ti­tion in the print­ing mar­ket. How­ever, the re­search firm stays pos­i­tive on the up­com­ing split that is sched­uled for Novem­ber 1.

The PC-maker de­liv­ered a mixed per­for­mance for the quar­ter; it re­ported ad­justed earn­ings per share (EPS) of $0.88 that came ahead of its es­ti­mates of $0.85. How­ever, rev­enue clocked in at $25.3 bil­lion, which nar­rowly missed its rev­enue es­ti­mates of $25.4 bil­lion. An­a­lysts at Pa­cific Crest have re­it­er­ated a Sec­tor Weight rat­ing with­out as­sign­ing any tar­get price to HPQ. Ad­di­tion­ally, Pa­cific Crest also slashed its rev­enue and EPS es­ti­mates based on the high de­gree of de­mand un­cer­tainty and cur­rency head­winds across its three largest mar­ket seg­ments. How­ever, un­like Can­tor and Pa­cific Crest, Jef­feries has main­tained a bullish stance on the stock, with a price ob­jec­tive of $40. Jef­feries be­lieves that HPQ shares will still con­tinue to grind higher in the com­ing weeks, as the un­cer­tainty around free cash flow out­look is al­le­vi­ated. De­spite re­port­ing slug­gish rev­enue growth, Hewlett-Packard ral­lied in the last trad­ing ses­sion.

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