PC and printer maker Hewlett-Packard Company (HPQ) on Tuesday caught some negative commentary from analysts at Jefferies & Co.
The firm maintained its “Hold” rating on HPQ and lowered its price target from $23 to $21. That new target implies a smaller 7% upside to the stock’s Monday closing price of $19.55.
Jefferies also cut its earnings estimates for the company, citing several factors:
- Softening PC demand over the past month,
- Tablet competition from Microsoft (MSFT),
- Competition from Chinese I.T. firm Huawei (which is a Windows 8 launch partner),
- Risks that OEMs may not initially embrace new Windows 8 hybrid tablet/notebooks, and
- A cautious outlook on Windows 8′s real impact on PC demand.
Hewlett-Packard shares posted small gains in premarket trading Tuesday.
The Bottom Line
Shares of Hewlett-Packard (HPQ) have a 2.71% dividend yield, based on last night’s closing stock price of 19.55. The stock has technical support in the $16 price area. If the shares can firm up, we see overhead resistance around the $22 price level.
Hewlett-Packard Company (HPQ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.
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