To: Jimbo Cobb who wrote (77 ) 5/7/2002 9:40:00 AM From: Elroy Read Replies (3) | Respond to Morgan Stanley upgrades to OVERWEIGHT from Equal-Weight, saying that even in the downside scenario the current valuation looks attractive; with merger uncertainty gone, HPQ's longer-term rewards outweigh its potential near- to medium-term risks; and even though the enterprise environmentremains weak, HPQ's well-placed integration plans and first-class printing franchise should bear fruit by FY03. Price target is $23. in the downside scenario the current valuation looks attractive So in the downside scenario, where HPQ negatively preannounces the July quarter because revenues and EPS come in significantly below plan, and EPS for 2003 gets lowered to $0.90, I don't think valuation looks attractive. I think if they miss out of the block (that would be the downside scenario) then the shares plunge to about $11 or so.with merger uncertainty gone, HPQ's longer-term rewards outweigh its potential near- to medium-term risks HPQ's well-placed integration plans and first-class printing franchise should bear fruit by FY03 . The well places integration plan is just cost reduction, right? It doesn't allow them to regain their lost technology leadership in any category. And the printing franchise is "bearing fruit" today and has been for years - nothing to do with 2003.
