CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our 12-month target at $31 on a P/E of 8.6x, shifting to our CY 25 EPS view of $3.66, below peers on near-term growth headwinds. We cut our FY 24 EPS view to $3.40 from $3.44 and keep FY 25’s at $3.63. HPQ posted Q4 EPS of $0.81 vs. $0.75, in line with consensus. Sales fell 4% (5% cc), missing expectations, with declines in Personal Systems (PS; -4%) and Printing (-5%). Commercial and Consumer PS units were both up 10% and 2%, respectively, but down on a revenue basis due to lower average selling prices. Printing revenue declined as hardware demand slowed across both Consumer (-22%) and Commercial (-12%). This reflects challenging market conditions and aggressive pricing. Despite the soft first half, we see signs of improvement in the second half driven by seasonal consumer PC demand, new AI-enhanced PCs, and a Windows refresh cycle. We are encouraged by HPQ’s capital return program with $775M returned to shareholders in Q1 through dividends and buybacks. We forecast FCF generation of $3.4B in FY 24.