Trends Still In Favor Of HP

Analysts at Collins Stewart reiterate their "buy" rating on Hewlett-Packard HP. The target price for HP is set to $65. Collins Stewart has higher revenue estimates for HP, in comparison with the Street expectations, as “the upside will be driven by printing, servers and PCs along with Europe showing a tiny bit of growth y/y.” The analysts add, “The tech recovery is being driven in part by a hardware refresh cycle and HP derives 65% of its revenues (56% of total profit) from hardware products, including printers, PCs, servers, and storage.” While the analysts are still worried about “Europe (40% of rev. in F1Q) it was flat y/y (in CC) and our checks suggest it has improved modestly since January. If it stays at this level, at least it is not negative, even if it is not much help while the other regions around the world will contribute to growth. But the EU is not all bad: Germany, 20% of EU GDP, is seeing improvements in its economy and modest GDP growth.” More Analyst Ratings here