Hewlett Packard Split Gets Mixed Reviews; Coverage Started on Dick's

In Wednesday's Analysts' Actions, analysts have mixed opinions about the Hewlett Packard split. Meanwhile, another Wall Street firm is initiating coverage of Dick's Sporting Goods (DKS). HP Inc. (HPQ), one of the two companies from the split, was upgraded at Barclays to EQUAL WEIGHT from UNDERWEIGHT. The firm cited better cash flow and yield prospects compared to Hewlett Packard Enterprise (HPE), the other entity. But, the firm is lowering its price target to $14 from $26 to reflect the spinoff. The same firm started coverage of Hewlett-Packard Enterprise with a bearish outlook. Analysts are giving an UNDERWEIGHT rating with a $13 price target. The cloud's direct and indirect impact on traditional IT are putting the company's revenue streams at risk. On top of that, its software and servers could struggle too, analysts said. Barclays also beginning coverage of Dick's Sporting Goods with an EQUAL WEIGHT rating and a $50 price target. Overall, the company's performance is 'not accelerating,' analysts said. But, the good thing is that industry pressures are decreasing. Until Dick's shows more strength, the firm is staying on the sidelines. TheStreet's U-Jin Lee reports in New York.