Shares of HP Inc. (HPQ) - Get Report were higher after the personal-computing company was the subject of numerous upgrades following the release of its stronger-than-expected fourth quarter earnings results.
The Palo Alto, Calif., company reported non-GAAP earnings per share of 62 cents on revenue of $15.3 billion. HP had been expected to report earnings of 52 cents a share on sales of $14.6 billion, based on a FactSet survey of analysts.
HP Inc shares at last check were 5% higher at $22.84.
Here's what Wall Street is saying:
Morgan Stanley (Equal-Weight Rating Affirmed, PT Raised to $26 From $22)
The results illustrate a trend toward strong demand for products in the home, which more than offset weaker commercial activity, Bloomberg quoted the investment firm as saying.
Morgan Stanley raised HP's fiscal 2021 revenue and EPS estimates by 3% and 10%, respectively. While the firm's rating remains equal-weight, it could move to a more positive view if visibility improves beyond the next couple of quarters.
Evercore ISI (Outperform Rating Affirmed, PT Raised to $27 from $24)
An impressive release is showing decent upside for the company as it is supported by consumer/work-from-home tailwinds, analysts at Evercore said, according to Bloomberg.
There is still concern about whether HP's supplies segment can continue to perform well past current market conditions. But the investment firm expects benefits to continue for at least a few more quarters. Evercore is also bullish on the company's plan to reduce its share count by more than 30% in the next two years.
Cowen (Market Perform Rating Affirmed, PT Raised to $23 From $20)
Cowen analysts are bullish on the company's cost controls, while continued share repurchases support valuation.