Since Quarter 1 earnings have come out for Hewlett Packard and I have re-evaluated the stock and downgraded from out-perform to just perform. The new target price based off my new valuations will be $54.32 per share from the previous valuation of $57.26 per share. This is based off poor guidance set forth by Hewlett Packard during the conference call about discussing earnings for the quarter. As well as delay in new products offered and sluggish performance in sales to commercial clients being down 12%.
Chris Whitmore, analyst at Deutsche Bank.
"We believe it could be a rocky road going forward as the transition to a revenue-driven story will likely take considerable time,"
A Huge Disappointment is the delay in the debut of the Webos Touchpad the "Timing of all our WebOS products (and) Wi-Fi version of TouchPad available in summer in the US, and rest of the world in the fall." This has already been delayed tremendously. It will be very difficult HP to gain strong makret share while Apple will most likely have their second generation Ipad out by then.
Jonathan Wiener
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