The One Analyst Defending H-P (HPQ, DELL, IBM)
To say that Hewlett-Packard Co. (NYSE: HPQ) has undergone some winds of change would be the understatement of the year. One analyst has come out in defense of H-P. Auriga now sees opportunity in the mess. The firm has raised…
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The firm noted that they usually look for opportunity when caution is present, and the firm believes that the steep drop in the price of H-P shares has brought into an oversold position. While the current price target is lower than the consensus target of $43.00, the current rating is more positive for buyers today and Auriga calls it an attractive risk-reward scenario even with the unknowns.
Zacks calls it a “Win-Win” analysis, but not for H-P… for its peers (competitors). Zacks maintained a short-term hold as it sees stiff competition in the Autonomy purchase and as it unravels its Palm (WebOS) for the most part. Zacks called it a huge opportunity for Dell Inc. (NASDAQ: DELL) and others as it looks to be more and more like a post-PC spin-off scenario just like International Business Machines Corporation (NYSE: IBM).
Before getting too hooked on the near-6% gain to $24.95 this morning, keep in mind that this stock hit as high as $34.00 on the day of earnings on word that it was going to spin out the PC unit. The drop on Friday was about 20% alone.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
