On Tuesday, analysts at Morgan Stanley backed their rating on tech company Hewlett-Packard Company (HPQ) due to its potential for strong growth in certain business areas.
The analysts maintain an “Equal-Weight” rating on HPQ.
A Morgan Stanley analyst commented, “With secular pressures in some of HP’s large business segments, the return to revenue growth is increasingly predicated on key investments in disruptive themes, including converged storage, Moonshot, and Vertica among others. Vertica addresses the $8 billion Big Data market that IDC expects to grow at 31% CAGR over the next several years. We expect Vertica’s penetration of this market to improve as it benefits from HP’s global sales and channel reach (HP Software sales started carrying Vertica quotas in November 2012). While not disclosed by the company, we believe Vertica revenue growth is in the 50-100% range in recent quarters.”
H-P shares were down a fraction during pre-market trading on Thursday. The stock is down -17.34% over the past twelve months.
The Bottom Line
Shares of Hewlett-Packard (HPQ) have a dividend yield of 2.53% based on Wednesday’s closing price of $20.93 and the company’s annualized dividend payout of 53 cents per share.
Hewlett-Packard Company (HPQ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.