Shares of HP jumped 3% to a new 52-week high Tuesday after an analyst said cost-cutting measures could give the stock a 20% boost.
HP’s restructuring plans have yet to be announced, but Soleil Securities rated HPQ stock a “buy,” saying the stock could move higher ahead of the news.
“We expect strength in the stock over the next few months as recently named chief executive Mark Hurd lays out and begins implementing his restructuring plans for the company,” analyst Shannon Cross said.
Cross said a workforce reduction of 10,000 could add 25 to 35 cents a share to earnings, giving the stock upside potential to $29 a share.
The broader market finished mixed amid nervousness ahead of Wednesday’s crude oil inventory data. Bonds rallied after Sweden and Hungary cut interest rates; the Federal Reserve is expected to raise them in the U.S. once again next week.
The Nasdaq added 3 to 2091, the S&P lost 2 to 1213, and the Dow declined 9 to 10,599. Volume rose to 1.72 billion shares on the NYSE, and 1.6 billion on the Nasdaq. Decliners led 16-15 on the NYSE, while advancers held a 15-14 edge on the Nasdaq. Downside volume was 57% on the NYSE, and 43% on the Nasdaq. New highs-new lows were 222-35 on the NYSE, and 114-34 on the Nasdaq.
Books-a-Million soared 23% on a stock buyback.
Cognos jumped 7.5% on a Smith Barney upgrade.
Valueclick climbed 5.5% after raising guidance.
