BMC Provides Color on Hewlett-Packard and Dell

BMC provided color on Hewlett-Packard HPQ and Dell DELL. In a research report published today, BMC stressed that higher components costs for both companies could provide a headwind to their stock price performance. In the report, BMC states, "for both Dell and HP, increases in various component costs the last few months very likely could begin to creep into COGS as we move through the year. At its most extreme, our analysis suggests Dell could face a $0.13 headwind and HP an $0.11 headwind in the next 12 months, most likely beginning in the Oct Q. However, as we illustrate in this note, Dell could have an opportunity to counter this potential headwind with ongoing structural OM changes." At the moment, BMC has a Buy rating and a price target of $19 placed on the company's stock. At the same time, BMC has a Hold rating and no price target on Hewlett-Packard's shares. On Wednesday, Hewlett-Packard lost 0.59% of its value to close the day at $35.36. Its shares regained some of yesterday's losses in today's pre-market trading, however, rising 0.45% to $35.53. Dell lost 1.64% on Wednesday to close the day at $15.64. Its shares reversed yesterday's trend in today's pre-market trading, however, rising 0.26% to $15.68.