This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

HP Shares Rise Ahead of Analyst Meeting

NEW YORK ( TheStreet) -- Hewlett-Packard (HPQ - Get Report) is set to hold its analyst day this coming Tuesday, and if the company hasn't named a new CEO by then or even as part of the festivities, it's sure to face plenty of questions about where it's leaning.

The stock is coming off a strong week where it gained almost 5%, including a 2.1% rise to $40.98 on Friday. It was the second positive week in a row for the shares which sold off in the wake of Mark Hurd's departure on August 6, setting a new 52-week low of $37.32 on August 27, a swing of 32% from its April 16 high for the year of $54.75. Prior to Hurd's surprise resignation, the stock was sitting comfortably above $46.

Wall Street was split on how imminent an announcement on a new CEO might be ahead of the meeting. Collins Stewart, which has a buy rating on the stock with a $55 price target, issued a note on Thursday saying it believes the company is close to announcing Hurd's successor, most likely an internal candidate.

It doesn't expect this will spark the stock to previous heights however, and didn't venture a guess as to who might get the job beyond identifying three likely candidates -- Anne Livermore, executive vice president, Enterprise Business; Todd Bradley, executive vice president, Personal Systems Group, and also the former CEO of Palm; and Dave Donatelli, executive vice president, Enterprise Servers, Storage and Networking -- and listing some positives and negatives for each.

Collins Stewart sees VJ Joshi, HP's executive vice president, Imaging and Printing Group, as a less likely candidate than the others, saying the printing business hasn't grown enough to justify a larger role for him.

"While the fact of resolving the CEO question will probably give rise to a modest relief rally, it is unlikely to generate the enthusiasm of five years ago when Hurd was named CEO," the firm told clients, saying the announcement could come in the "very near term."

ISI Group, however, offered a preview of the meeting earlier in the week, and it doesn't expect HP will reveal its next leader.

"We expect the company to offer its preliminary FY11 outlook in addition to providing an overview of each of its businesses," the firm said. "We would not be surprised if the company does not have an update on its CEO search by the analyst day."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HPQ $12.27 0.00%
PAR $6.39 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs