Market Overview

Reasons To Be Bullish On HP

Reasons To Be Bullish On HP

Analysts at Loop Capital Markets initiated coverage of HP Inc. (NYSE: HPQ) ahead of the company's earnings report, scheduled to be released after Wednesday's close. Analyst Ananda Baruah initiated coverage of HP's stock with a Buy rating and $23 price target.

HP's printing business, which represents 40 percent of total revenue and 80 percent of total operating profit, is "tracking ahead of its supplies targets" and should see quarter-over-quarter growth in supplies for the foreseeable future, Baruah said. The PC business accounts for the remainder of the business could also benefit from a Windows 10 commercial PC refresh.

HP could also deliver a "materially stronger" revenue profile over time, which would mark an improvement versus the company's own guidance of "flattish +" profile, the analyst added. As such, the stock will ultimately re-rate higher from its current 10x multiple to a range of 12x-14x. The analyst's $23 price target is based on a 13x multiple on his 2019 earnings per share estimate of $1.80.

Here is a quick look at some of the other sell-side rating heading into the earnings print.

  • Stifel Nicolaus: Hold rating, $14 price target.
  • RBC Capital Markets: Buy rating, $22 price target.
  • Jefferies: Hold rating, $18.75 price target.
  • Susquehanna: Hold rating, $20 price target.
  • BMO Capital Markets: Hold rating, $20 price target.
  • Mizuho Securities: Buy rating, $21 price target.

Related Links:

Earnings Scheduled For August 23, 2017

PC Market Downturn Continues Into Its Sixth Year

Latest Ratings for HPQ

Jan 2021BarclaysDowngradesEqual-WeightUnderweight
Dec 2020Morgan StanleyUpgradesEqual-WeightOverweight
Nov 2020B of A SecuritiesMaintainsUnderperform

View More Analyst Ratings for HPQ
View the Latest Analyst Ratings


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