Yep and the HWP gpt downgraded. Sounds like sour grapes.
RESEARCH ALERT - Hewlett downgraded
NEW YORK, Jan 29 (Reuters) - Merrill Lynch [NYSE:BOB - news] said on Thursday it lowered its near-term rating on shares of Hewlett-Packard Co to neutral from accumulate while keeping its long-term buy rating on the stock.
-- ''Hewlett has hit a patch of bad luck with heir-apparent Rick Belluzzo leaving, Compaq Computer Corp (CPQ - news) becoming a true enterprise rival and Sun Microsystems Inc (SUNW - news) poised to take leadership in UNIX servers,'' analyst Steve Milunovich said in a research note.
-- Cuts first quarter earnings estimate to $0.87 per share from $0.91 per share and 1998 estimate to $3.35 per share from $3.40 per share, he said.
-- ''We are concerned about lackluster ink jet sales, weakness in the Far East and mid-teens expense growth,'' Milunovich said.
-- A supplier indicated its March quarter business would be off due to weak business with Hewlett-Packard, he said.
-- First quarter sounds mixed, he said. Hewlett could show better than 20 percent growth in UNIX servers, and see improved laser printer results, personal computer market share gains and healthy U.S. and European economies.
-- But negatives are more persuasive in the quarter, he said.
-- ''Hewlett-Packard has seen the Far East, especially Korea, weaken and currency should haircut revenue and order growth by about four points,'' he said.
TG |
