Analysts Offer Differing Viewpoints on Hewlett-Packard Company (HPQ) Following 3Q:FY15 Results

In a research report published Friday, Cantor analyst Brian White reiterated a Hold rating on shares of Hewlett-Packard Company (NYSE:HPQ), and reduced the price target to $29 (from $33), after the company reported fiscal third-quarter results and provided an ‘uninspiring’ outlook that keeps White cautious on the stock.

White said, “With challenged trends across the PC and printing markets expected to continue, combined with growing macroeconomic risks, we are lowering our price target and cutting our estimates. In our view, the separation of HP into two companies makes sense and the split process is on track for November 1; however, this does not change the fact that we believe both of these businesses are rapidly being commoditized and thus future profit growth potential appears limited. HP will host its Securities Analyst Meeting on September 15.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian White has a total average return of 13.0% and a 56.9% success rate. White has a -49.4% average return when recommending HPQ, and is ranked #85 out of 3738 analysts.

Brean Capital analyst Ananda Baruah took the other route, reiterating a Buy rating on HPQ stock, with a price target of $45, which implies an upside of 56% from current levels.

Baruah noted, “Thematically,we continue to believe that 1) there is room for ongoing L-T consolidation in PCs, Printing, Enterprise, and Services, 2) there is a lot more room for ongoing cost savings than the $1B in “clean sheeting” that HP identified on its earnings call, and 3) HP seems to be gaining at least some incremental traction in its go-forward Enterprise solutions and Services strategy, which it views as differentiated given the construction of current Enterprise vendors.”

According to TipRanks, analyst Ananda Baruah has a total average return of -3.2% and a 42.6% success rate. Baruah has a -3.8% average return when recommending HPQ, and is ranked #3419 out of 3738 analysts.

Out of the 26 analysts polled by TipRanks, 13 rate Hewlett-Packard Company stock a Buy, while 13 rate the stock a Hold. With a return potential of 39.7%, the stock’s consensus target price stands at $40.39.

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