Proactive Investors - HP Inc (NYSE:HPQ) has seen its share price target bumped up by Bank of America (NYSE:BAC) analysts on grounds of improved cash flow and the resumption of capital returns to shareholders.
Ahead of the technology company’s interim earnings on May 29, analysts from the bank said conditions should improve over the latter half of the year.
This includes in HP’s personal systems business, while operating margins in its printing division should be at the high end of long-term guidance, despite headwinds from the likes of soft demand in China.
Per share earnings should be in the midpoint of HP’s guidance of US$0.76 to US$0.86 for the second quarter, Bank of America said.
Revenue could miss Wall Street expectations at US$12.5 billion for the quarter, though, analysts added.
That said, improving momentum for PC sales towards the latter half of the year led the bank to hike full-year revenue expectations to US$55 billion from US$53 billion.
Free-cash-flow was forecast by the bank to come in ahead of Wall Street estimates at US$3.3 billion too.
Bank of America bumped HP’s share price target from US$32 to US$35 as a result, against Thursday’s close of US$31.36, and reiterated a ‘buy’ rating.