Seeking Alpha

JPMorgan's H-P upgrade: Valuation, cash flow growth praised

  • JPMorgan's Mark Moskowitz, who has upgraded H-P (HPQ +2.4%) to Overweight and raised his PT to $35 from $30, thinks the IT giant is capable of generating annual free cash flow of more than $8B. That's a level well above H-P's FY14 (ends Oct. '14) FCF guidance range of $6B-$6.5B.
  • Moskowitz also sees room for further multiple expansion: He thinks H-P, which currently trades at 7.5x FY14E EPS, could eventually trade at 8.5x-9.5x earnings.
  • Shares are up 93% YTD, and not far removed from their 52-week high of $28.70.
Comments (5)
  • 35.43M shares of H-P owned by JPM.


    Anything to be gained by the upgrade it issued for H-P?


    What a dirty business.


    Goldman Sachs owns 30.86M shares of H-P too.


    Why does this matter?


    GS upgraded XOM, which it owns and so does JPM.


    One dirty hand washing the other today, so it seems.
    17 Dec 2013, 12:15 PM Reply Like
  • The one thing I now worry about is how "fierce" is Mr. Dell going to be, and if any of his recent moves are like the ones from his previous past, I'd say, HPQ, watch out. Maybe, JPM and GS can see this, and are therefore helping give HPQ a lift, while they quietly lighen....
    17 Dec 2013, 01:23 PM Reply Like
  • Don't buy HP. Don't buy HP products either.


    They abuse the HB-1 immigrant worker visas. They fired the Americans and replaced them with guys from India after merging with Compaq.


    A pox on HP and its management.


    I have a Samsung laser printer for $57. What do I need HP for?
    17 Dec 2013, 02:53 PM Reply Like
  • Boy what a year will do.
    17 Dec 2013, 02:56 PM Reply Like
  • Post Apotheker and Ray Lane (reportedly owes IRS $100,000,000.00), people expected a smooth and steady improvement with Meg Whitman. Actually, it has been more delays and spurts. Today, HP is intact, sound, running smoothly, avoiding negative publicity focused on the BoD and C level execs, leaning hard into new technologies, future focused.


    For HP, 2013 has been a tough, turnaround year. Kudos to Meg and all HP employees!
    17 Dec 2013, 03:02 PM Reply Like
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