PC and printer maker Hewlett-Packard Company ( HPQ ) on Thursday saw its coverage initiated with a "Hold" rating by analysts at Auriga.
The firm also set a $46 price target on HPQ shares, which suggests a 12% upside to the stock's Wednesday closing price of $41.06.
An Auriga analyst commented, "We believe HP is facing headwinds in terms of both top-line growth and margin expansion due its under-investment in R&D over the past five years, and we are concerned with low earnings quality stemming from all the acquisitions in recent years. Low valuation multiples seem to be accounting for at least some of our concerns, but aren't low enough for us to want to recommend the stock."
Hewlett-Packard shares were mostly flat in premarket trading Thursday.
The Bottom Line
Shares of Hewlett-Packard ( HPQ ) have a .78% dividend yield, based on last night's closing stock price of $41.06. The stock has technical support in the $38 price area. If the shares can firm up, we see overhead resistance around the $44-$46 price levels.
Hewlett-Packard Company ( HPQ ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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