It remains to be seen whether Hewlett-Packard’s upcoming overhaul will pay off in the long run, but one things seems clear: the manner in which HP revealed its plans was ill-conceived at best. HP’s announcements sent its stock tumbling, and analysts continue to lose faith in the company as unrest builds. In a note to investors on Thursday, RBC Capital Markets analyst Amit Daryanani cut his rating on HP stock to Sector Perform from Outperform, and he lowered his price target $5 to $30. Daryanani says HP’s announcement that it may spin off or sell its PC business “will accelerate the deterioration of HP’s brand and asset value,” and he thinks competitors will gain market share as a result. The analyst also believes HP’s decision to kill off its webOS device business could devalue the company’s PC division if it opts for a sale. He thinks a quick sale would be a good move for HP, though he writes that a cut in company forecast or increased buybacks are also options.
