Story image

HP schedules analyst meeting

28 Sep 2012

Hewlett-Packard will hold an analyst meeting next week as Wall Street prepares for further bad news from the struggling company.

Jefferies, a global investment banking group, analyst Peter Misek cut his rating on HP's shares to Underperform from Hold on Wednesday, with a new target of US$14, down from $17.

Forbes reports Misek continues to see "cyclical and secular headwinds" for the company's PC, services and printer business.

Misek's report follows news HP will eventually return to the smartphone market, with CEO Meg Whitman acknowledging it’s only a matter of time before the company returns to the industry it abandoned over a year ago.

While Whitman accepted the importance of smartphones in the industry, she refused to condemn the PC business at the same time.

But Misek believes that although the company will "aggressively attack" both the smartphone and tablet markets, he sees both as "risky investments" and believes Windows 8 will not help increase PC sales across the globe.

Such views leads Misek to predict HP will use the meeting to issue FY 2013 guidance significantly below current expectations, with J.P. Morgan analyst Mark Moskowitz sharing a similar opinion.

“Our research indicates that  business conditions remain challenging and with limited remedies, particularly in PCs, printing, and servers,” says Moskowitz to Forbes.

“The factors are part secular, part macroeconomic. Plus, our latest J.P. Morgan CIO survey results indicate that planned growth in IT spending, in general, appears to be compressing.

"Overall, we expect HP to  acknowledge the business challenges, injecting cautious commentary related to FY 2013 and then trying to shift the focus more on HP’s long-term turnaround…

"More definitive plans to reconstruct HP’s long-term revenue and earnings growth profiles need to be in place to provide a potential bottoming in the model and investor sentiment, in our view.”

Cloud application attacks in Q1 up by 65% - Proofpoint
Proofpoint found that the education sector was the most targeted of both brute-force and sophisticated phishing attempts.
Huawei to deploy Open Rack in all its public cloud data centres
Tech giant Huawei has unveiled plans to adopt Open Rack proposed by the Open Compute Project in its new public cloud data centres across the globe.
Beyond renewables: Emerging technologies for “greening” the data centre
Park Place Technologies’ CEO shares his views on innovations aside from renewable energy that can slim a data centre’s footprint.
Interxion’s David Ruberg wins Europe’s best data centre industry CEO
The European CEO Awards took place this week to celebrate the key figures at the helm of corporations that are driving innovation.
Opinion: 5G’s imminent impact on data centre infrastructure
Digital Realty’s Joseph Badaoui shares his thoughts on how 5G will transform data centre infrastructure now and beyond.
EMEA external storage market hits record high, Dell EMC on top
IDC's recent analysis on the external storage market in EMEA has shown healthy results - with some countries performing better than others - largely fuelled by all-flash arrays.
SolarWinds extends database anomaly detection
As organisations continue their transition from purely on-premises operations into both private and public cloud infrastructures, adapting their IT monitoring and management capabilities can pose a significant challenge.
Was Citrix unaware of its own data breach until the FBI got involved?
According to a blog post from Citrix’s CSIO Stan Black, the FBI contacted Citrix on March 6 and advised that international cybercriminals had allegedly gained access to Citrix’s internal network.