2012年11月14日星期三

Hewlett-Packard price target cut, UBS says company ‘must break up’


PC maker Hewlett-Packard Co. Willpower account its dividend Tuesday, and analysts by the side of UBS Securities don’t expect them to come about very talented.

UBS analysts Steven Milunovich and Peter Christiansen thought they expect the company to account fiscal 2013 dividend of US$3.40, which is underneath the be more or less US$3.50 analysts are expecting. Their bearish outlook led the two analysts to cut back their 12-month worth target on HP to $12.75 on Wednesday, from an earlier target of $14.

The brace thought the company, which has suffered from falling PC sales in the sphere of the carry on only some years, continues to succumb to ongoing “secular pressures.”

Folks secular pressures refer to the ongoing trend of waning PC sales in the same way as medicine devour away by the side of the marketplace share of desktop and laptop computers. That’s occurring in the same way as rival PC maker Apple in addition continues to get marketplace share with its Mac products, in the same way as well in the same way as its own medicine.

Mr. Milunovich and Mr. Christiansen don’t get the drift HP decision a cure-all meant for with the aim of anytime soon.

We expect HP to stand in front of pressures in the sphere of PCs rising from tablet cannibalization, a tepid Windows 8 uptake, softening IT budgets, and aggressive industry competition,” the brace wrote in the sphere of a seek record. “Secular declines in the sphere of printing may well startle despite the impressive fresh artifact refresh.”

Weakness in the sphere of HP’s printing commerce would come about a startle, prearranged with the aim of the company has seen convincing growth near in the sphere of fresh years. But Mr. Milunovich and Mr. Christiansen thought with the aim of basic indications from rival rule put it to somebody near may well a decline in the sphere of ink jet and even laser-based printing food and device sales.

The brace perform get the drift a solution to HP’s secular woes, however. In the sphere of their seek record, Mr. Milunovich and Mr. Christiansen reiterated a call they made carry on month urging HP to break up its commerce into two segments. They mention HP separate its printers and individual computers division from the division with the aim of sells products to businesses and be them two separate companies.

Mr. Milunovich and Mr. Christiansen believe HP’s stockpile would come about worth added than US$20 a share if with the aim of were to occur. In the same way as of Wednesday afternoon, HP’s stockpile was trading by the side of US$13.19, a get of 5¢, or else 0.38% on the sunlight hours.




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