Skip to main content

Goldman Sachs upgraded Hewlett-Packard to its "Americas conviction buy list," removing rival Dell, which rattled Wall Street on Friday with concerns that rising turnaround costs would slow profit growth in coming quarters. Analyst Laura Conigliaro likes HP's "consistency and its ability to drive upside," especially in a softer U.S. economy. Among other things, she points to HP having a higher percentage of revenue from international markets than its rivals and its operating expense as a percentage of revenue continues to decline, pointing to higher margins. She raised her price target to $59 (U.S.) from $57. The stock is fractionally higher at $51.14 on Friday afternoon. On the flip side, Dell shares tumbled $3.66 or 13 per cent to $24.48, after falling as low as $23.92 earlier in the session, after its quarterly results included narrowing profit margins and higher operating expenses. "Although our thesis on Dell as a turnaround is intact, the timeline is not and the uncertainty is higher," she writes, moving her price target to $32 from $35, with a "buy" rating.

Interact with The Globe