HP Facing Fresh Wall Street Gloom After Analyst Downgrade
Jeffries & Co. analyst Peter Misek downgraded HP shares from "hold" to "underperform" and cut his target price for HP shares from $17 to $14, citing risks from HP's planned re-entry into the smartphone and tablet markets, as well as other headwinds facing its businesses.
"While the move makes sense strategically, we see it as a high-risk move," Misek said in the research note. "On top of adding costs and working capital burdens to an already stressed balance sheet, there could be additional write-offs."
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