Goldman Sachs reported on Tuesday that it has downgraded technology company, Hewlett-Packard Company (HPQ) to “Sell.”
The firm has lowered its rating of HPQ from “Neutral” to “Sell,” and has given the company a $16 price target. This price target suggests a -28% drop from the stock’s current price of $22.36.
Analysts from the firm do not expect the company to recover until 2014. They believe that any upside that may come from the company’s restructuring will be offset by weak PC and hardware demand. Analysts also believe that in order to grow, the company must reinvest in itself, which could hurt earnings.
Looking ahead, the firm now sees FY2013 earnings of $3.26 per share with $113.19 billion in revenue. For FY2014, the firm is expecting EPS of $3.36 and $110.33 billion in revenue.
Hewlett-Packard shares were down 83 cents, or -3.56% during premarket trading Tuesday. The stock has been mostly flat in the past year.
The Bottom Line
Shares of Hewlett-Packard Company (HPQ) have a 2.49% yield, based on Monday’s closing price of $23.31.
Hewlett-Packard Company (HPQ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.