Consumer Electronics

A Valuation Turnaround Call for HP (HPQ)

Hewlett-Packard Co. (NYSE: HPQ) is a truly different company without Mark Hurd.  After his departure and ouster, the stock never found its way back to normal in 2010 despite a bull market.  That bias may be changing if a research report has caught the right turnaround and valuation angle this morning.

UBS has raised H-P to “Buy” from “Neutral” and its new price target objective is $52.00 rather than the $48 previously offered.  The call is effectively one of valuation, but the report does note margin expansion initiatives under Leo Apotheker as its new CEO.  The growth driver is services, with the 3Com and 3Par buys noted favorably as well.

Due to its sell-off in 2010, we listed H-P as one of the best six DJIA targets with the most implied upside for 2011.  We would note that this morning’s upgrade is even under what the consensus target was from Thomson Reuters at the time.  Part of the reason for the expected upside is simple: H-P was also named as one of The Sloths of the DJIA for 2011.

After the open, H-P shares are seeing a gain of 1.4% to $45.49; the 52-week trading range is $37.32 to $54.75.

JON C. OGG

It’s Your Money, Your Future—Own It (sponsor)

Are you ahead, or behind on retirement? For families with more than $500,000 saved for retirement, finding a financial advisor who puts your interest first can be the difference, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors who serve your area in minutes. Each advisor has been carefully vetted and must act in your best interests. Start your search now.

If you’ve saved and built a substantial nest egg for you and your family, don’t delay; get started right here and help your retirement dreams become a retirement reality.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.