Raymond James analyst Brian Alexander downgraded HP in a research note following the earnings release, calling it a "classic 'throw in the towel' downgrade." Alexander wrote that HP's turnaround may be unraveling.
"Clearly, we acknowledged the company's challenges, but expected more stability in the near term than what these results suggest," Alexander noted. "We can no longer rely on valuation support for a business that is deteriorating more quickly than we expected and where we have much lower confidence in the pace of the turnaround." He downgraded HP to market perform and took away his price target. It had previously been $28.
HP's product offerings are convoluted, stagnant, uninspiring, and losing mind share seemingly as fast as the company is losing market share.
Whitman and her team are fast losing any supporters as she tries to turn the company around. Given the structural issues facing HP, there may not be much of a company left once all is said and done.
Interested in more on HP? See TheStreet Ratings' report card for
Written by Chris Ciaccia in New York