JP Morgan Increases HP Estimates
J.P Morgan has increased its target price for HP from $24.50 (£15.79) to $29 as a result of improved services and better printer supply margins.
Mark Moskowitz, the company’s IT hardware analyst made this estimation, but has mentioned concerns regarding PCs, servers, printers and services, reports Forbes.
His revenue projection rose slightly from $27.02 billion to $27.09 billion and raised his fiscal fourth quarter EPS estimate from $0.99 to $1.03, while his EPS (earnings per share) estimates for fiscal 2013 and 2014 are $3.61 and $3.70 respectively.
HP has also repaired its balance sheet significantly. In April 2012, it had a $21.8 billion net negative cash position, though this has no improved to a negative $13.6 billion.
The printer industry is a competitive sector, with a variety of companies fighting for the money of consumers, including Canon, Samsung and Dell, which offer a wide range of different models.
Posted by Canzil Ahmed.