Kisner was impressed with the company's change in sales strategy "towards lessened reliance on promotional pricing activities." FY16 FCF guidance was lowered due to the change, but the analyst was satisfied with it because of the strategy's potential benefit for the company in the long run.
Due to increased visibility in computer outlets and stores, HP announced it would shift its "pricing strategy to an everyday low price model" from a promotional pricing model, said Kisner. The new pricing strategy, along with increasing marketing spending will provide greater results to HP's sales, Kisner believed.
At the time of writing HP traded at $12.73, down 4.54 percent on the day.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.