The majority of the analysts hold a bullish outlook based on HPQ’s diversified product solutions and worldwide coverage. They expect the company to continue its investments in software and storage to increase its penetration rates in enterprise IT and leverage over the long term. Any further increase in revenue and margin guidance will lead to significant operating leverage and earnings growth in the near term. The company’s international presence in the fastest growing areas of the world, an increasingly rich mix of IT product lines, and significant cost reduction prospects on the horizon position it well to outperform even in a softer macro environment. The overall IT demand witnessed a healthy improvement in comparison with the current economic scenario a few quarters ago. The rise in consumer and commercial hardware revenue of the Imaging and Printing segment indicates a revival in enterprise spending. The analysts view HPQ as having significant buying power and believe that the company is favorably positioned for component procurement relative to its competitors. Hence, the analysts recommend investors to build positions in the stock.
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