Out of the Gate: Hewlett-Packard, Dell |
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Fri, 30 Nov 2007 15:57
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NEW YORK (AP) - Shares of Hewlett-Packard Co. rose Friday morning after a Goldman Sachs analyst added the printer and computer maker to its list of recommended stocks, taking the spot of Dell Inc., whose shares fell sharply.Hewlett-Packard gained 35 cents to $51.40, but Dell shed $3.37, or 12 percent, to $24.77 after the opening bell.Analyst Laura Conigliaro also raised her price target on Hewlett-Packard to $59 from $57, citing increased demand for notebook computers and the company's growth in that market, particularly outside the U.S.'HP is our most diverse company, with 67 percent of its total revenue coming from international markets, well higher than our coverage universe average of 51 percent,' she said in a client note.Conigliaro said she removed Dell from her list of recommended stocks because efforts to increase revenue in new markets -- particularly international and consumer sectors --are 'highly uneven' and contributing to gross margin decline.In particular, in the U.S. consumer market, 'losses widened again this quarter' and the market 'was therefore probably the second largest contributor to Dell's gross margin decline,' she said. Conigliaro kept her $32 price target.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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