H-P Kept a Hold on '09 Outlook

Tags: hpq
28 Nov 10:18pm
Posted by ZacksResearch
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With a portfolio that spans across printing, personal computers (PCs), software, services and information technology (IT) infrastructure, Hewlett-Packard Company (HPQ) is among the world's largest IT companies, with revenue totaling $118.4 billion for the fiscal year ended October 31, 2008. HP serves more than one billion customers in more than 170 countries across six continents.

Following strong results for its third quarter of fiscal year 2008, Hewlett-Packard has announced better-than-expected results for the fourth quarter and has guided for a robust fiscal 2009.

However, we remain concerned that several factors will cause revenue to slow in the future. First, HPQ's acquisition of EDS adds a slower growth company to its revenue base. Next, the global economy is slowing, and although HP has benefited from 68.0% of revenue coming from overseas, this could hurt in into next year.

We therefore maintain our Hold recommendation on HPQ shares with a six-month target price of $35.00.

Anita Mohata contributed to this report.

Read the full analyst report on HPQ



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