Wells Fargo Maintains Outperform Rating Following HP's Q4 Results

Wells Fargo released a note Friday morning on Hewlett-Packard HPQ following fourth quarter results. The firm maintains an Outperform rating. Maynard Um, analyst at Wells Fargo, is encouraged by free cash flow of $2.4 billion that seem to be “slightly ahead of the prior $6-6.5 billion guide.” Potential divestitures would also be” positive in helping the balance sheet or fund M&A,” says Um. On PC's, Um says, “guidance does not embed macro or improvement/stabilization in PCs, PC sales and margins were higher than expected, particularly in the commercial segment.” In summary, Hewlett-Packard's financial standing seems to be improving, but there are still question marks surrounding the company's business segments. HP shares gapped higher but have since sold off sharply. The stock hit a session low just over a support level at $29.50 and has bounced modestly. The stock is down more than 1 percent at last check.