Topeka Capital Downgrades Hewlett-Packard to “Sell” (HPQ)
On Tuesday analysts at Topeka Capital downgraded Hewlett-Packard Company (HPQ) after a 31% run up from its November low.
The analysts downgraded HPQ from “Hold” to “Sell” and see shares reaching $11.50, a -19% downside from Monday’s closing price of $14.21.
“In less than a month, HP’s stock has rallied 31% from the November 20th low to yesterday’s intra-day high on what we believe is a combination of hope that a major shake up at HP is around the corner and short covering activity,” the Topeka Capital analyst comments. “Given the secular portfolio challenges we expect HP to face in the foreseeable future, combined with a soft spending environment, we believe investors should take advantage of this early holiday gift and take profits in the stock. As such, we are downgrading our investment opinion on HP to SELL from HOLD.”
Hewlett-Packard shares were up 2 cents, or +0.14%, in premarket trading on Tuesday.
The Bottom Line
Shares of Hewlett Packard (HPQ) have a 3.73% dividend yield, based on last night’s closing stock price of $14.21. The stock has technical support in the $12 price area. If the shares can firm up, we see overhead resistance around the $16-$17 price levels.
Hewlett-Packard Company (HPQ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.8 out of 5 stars.
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