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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Strength in Notebook Demand Continues to Drive HP as Print Picks Up; Maintaining $23 FVE

Mark Cash Senior Equity Analyst

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.

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Company Profile

Business Description

HP Inc. is a leading provider of computers, printers, and printer supplies. The company's three operating business segments are its personal systems, containing notebooks, desktops, and workstations; and its printing segment which contains supplies, consumer hardware, and commercial hardware; and corporate investments. In 2015, Hewlett-Packard was separated into HP Inc. and Hewlett Packard Enterprise and the Palo Alto, California-based company sells on a global scale.

Contact
1501 Page Mill Road
Palo Alto, CA, 94304
T +1 650 857-1501
Sector Technology
Industry Computer Hardware
Most Recent Earnings Apr 30, 2021
Fiscal Year End Oct 31, 2021
Stock Type Cyclical
Employees 53,000

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