Deutsche Bank Raises Hewlett-Packard Price Target On Profitability Improvements Expectations

In a research report sent to investors today, Deutsche Bank analyst Sherri Scribner maintained a Buy rating on Hewlett-Packard Company (NYSE:HPQ) with a $45 price target, which represents a potential upside of 20% from where the stock is currently trading.

Scribner observed, “HPQ reports F4Q-14 earnings Tues, Nov 25 after the close. We expect a relatively in-line Q, with the potential for higher EPS driven by buybacks. We believe OpMgns will improve Q/Q and Y/Y driven largely by Enterprise Services margins. We believe most investors will be focused on the details of the split, however we do not expect additional detail on the split during the call beyond what HPQ has already provided. As a result of higher buybacks, we have adjusted our EPS higher for FY-15E and FY16E. We have also raised our PT to $45 from $40, driven by what we believe is a more reasonable, but still conservative, multiple of 11x FY-15E. Trading below peers, we rate HPQ a Buy. “

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Sherri Scribner has a total average return of 11.2% and a 73.8% success rate. Scribner has a 8.7% average return when recommending HPQ, and is ranked #449 out of 3377 analysts.

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