NEW YORK, Dec 28 (Reuters) - Hewlett-Packard has a strong financial position that could help it gain market share during the market downturn, Barron's wrote in its Dec. 29 edition.
With reliable revenue, the technology company qualifies as a defensive stock, and one that trades more cheaply on a forward earnings basis than rivals Dell Inc, and International Business Machines Corp, Barron's wrote.
That multiple -- 8.18 times fiscal 2010 estimated earnings for HP, versus 8.32 for Dell and 9 for IBM -- makes it attractive, Barron's wrote, citing a money manager with Atlantic Trust who predicted its shares could go up into the low $50s-range when normalcy begins returning to the markets.
The newspaper quoted a Barclay's Capital analyst as estimating HP shares could rise to as much as $47.
Shares in HP closed at $34.97 in trading on the New York Stock Exchange on Friday.
Barron's cited a weaker euro, HP's debt levels and its defined-benefit pension plan as challenges to the company.
(Reporting by Phil Wahba; editing by Gunna Dickson) Keywords: HP/ (phil.wahba@thomsonreuters.com; +1 646 223 6128; Reuters Messaging: phil.wahba.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
With reliable revenue, the technology company qualifies as a defensive stock, and one that trades more cheaply on a forward earnings basis than rivals Dell Inc, and International Business Machines Corp, Barron's wrote.
That multiple -- 8.18 times fiscal 2010 estimated earnings for HP, versus 8.32 for Dell and 9 for IBM -- makes it attractive, Barron's wrote, citing a money manager with Atlantic Trust who predicted its shares could go up into the low $50s-range when normalcy begins returning to the markets.
The newspaper quoted a Barclay's Capital analyst as estimating HP shares could rise to as much as $47.
Shares in HP closed at $34.97 in trading on the New York Stock Exchange on Friday.
Barron's cited a weaker euro, HP's debt levels and its defined-benefit pension plan as challenges to the company.
(Reporting by Phil Wahba; editing by Gunna Dickson) Keywords: HP/ (phil.wahba@thomsonreuters.com; +1 646 223 6128; Reuters Messaging: phil.wahba.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.