Analyst Note| Mark Cash |
No-moat HP reported top- and bottom-line numbers above our estimates as the company's notebook and printing segments demonstrated strength. We were particularly impressed by the rejuvenated supplies and commercial print hardware segments, which were buoyed by improving enterprise demand. Management pointed out a supply-demand imbalance due to industry-wide component shortages and a resurgence of COVID-19 in Asia led to the firm not being able to fulfill its broad-based demand. We are maintaining our fair value estimate of $23 per share. Shares fell more than 6% after hours and we recommend investors wait for a wider margin of safety.