Credit Suisse Lowers EPS Estimate on Hewlett-Packard
A report from Credit Suisse reiterates its Neutral rating and $30 price target, lowers its FY12 EPS estimate from $4.44 to $4.05, and establishes a FY13 EPS estimate of $4.55 on Hewlett-Packard (NYSE: HPQ).
The report states, “Although management has set realistic guidance, we believe that with so many macro headwinds (IPG, ESSN), secular issues (Services margins, PC growth) and a potential impact on HDD shortages, fundamentals may only gradually improve over the next 12 months. PSG secular challenges and HDD impacts. The PC business will see revenues declining by 10% in FY12 driven by several factors. First, we see limited end market growth, and positioning is also questionable in our view with a weak tablet strategy. Second, HDD shortages could impact top and bottom line growth over the next six months.”
HPQ closed yesterday at $26.86.
