Managing the ink profits may be the key to HP's success. The rest of the Street, which is almost universally bearish on HP, is grudgingly raising its estimates and price targets, while continuing to warn that lack of growth remains the main feature of a recovery they have a hard time believing: Shebly Seyrafi, FBN Securities: Reiterates a Sector Perform rating, and raises his price target to $24 from $20. "The results show that HPQ chose profitability over market share, reversing its behavior in recent quarters, and we see this preference for profitability continuing […] HPQ now believes that its F2013 FCF will be around $7.5B, lower than the FH1 run rate, as there are four negative FCF drivers in FH2: 1.) there will be larger restructuring payouts in FH2 (perhaps ~$1B more), 2.) higher capex, 3.) higher taxes paid, and 4.) more investment in inventory (inventory declined by $400M Q/Q). Still, the results suggest upside to the $7.5B FCF projection (we project $7.9B). We are also encouraged that its operating net debt position was reduced to $2.9B from $4.7B.". Ben Reitzes, Barclays Capital: Reiterates an Equal Weight rating, while raising his price target to $26 from $24. "The higher cash flow guidance for the year and the possibility of being debt free on an operating company basis by the end of the year bodes well for higher cash returns next year. 
Share:  Managing the ink profits may be the key to HP's success. The rest of the Street, which is almost universally bearish on HP, is grudgingly raising its estimates and price targets, while continuing to warn that lack of growth remains the main feature of a recovery they have a hard time believing: Shebly Seyrafi, FBN Securities: Reiterates a Sector Perform rating, and raises his price target to $24 from $20. "The results show that <span class="company">HPQ</span> chose profitability over market share, reversing its behavior in recent quarters, and we see this preference for profitability continuing […] <span class="company">HPQ</span> now believes that its F2013 FCF will be around $7.5B, lower than the FH1 run rate, as there are four negative FCF drivers in FH2: 1.) there will be larger restructuring payouts in FH2 (perhaps ~$1B more), 2.) higher capex, 3.) higher taxes paid, and 4.) more investment in inventory (inventory declined by $400M Q/Q). Still, the results suggest upside to the $7.5B FCF projection (we project $7.9B). We are also encouraged that its operating net debt position was reduced to $2.9B from $4.7B.".<span class="sent"> <span class="analyst">Ben Reitzes</span>, Barclays Capital: Reiterates an Equal Weight rating, while raising his price target to $26 from $24. "The higher cash flow guidance for the year and the possibility of being debt free on an operating company basis by the end of the year bodes well for higher cash returns next year.</span>...Managing the ink profits may be the key to HP's success. The rest of the Street, which is almost universally bearish on HP, is grudgingly raising its estimates and price targets, while continuing to warn that lack of growth remains the main feature of a recovery they have a hard time believing: Shebly Seyrafi, FBN Securities: Reiterates a Sector Perform rating, and raises his price target to $24 from $20. "The results show that <span class="company">HPQ</span> chose profitability over market share, reversing its behavior in recent quarters, and we see this preference for profitability continuing […] <span class="company">HPQ</span> now believes that its F2013 FCF will be around $7.5B, lower than the FH1 run rate, as there are four negative FCF drivers in FH2: 1.) there will be larger restructuring payouts in FH2 (perhaps ~$1B more), 2.) higher capex, 3.) higher taxes paid, and 4.) more investment in inventory (inventory declined by $400M Q/Q). Still, the results suggest upside to the $7.5B FCF projection (we project $7.9B). We are also encouraged that its operating net debt position was reduced to $2.9B from $4.7B.".<span class="sent"> <span class="analyst">Ben Reitzes</span>, Barclays Capital: Reiterates an Equal Weight rating, while raising his price target to $26 from $24. "The higher cash flow guidance for the year and the possibility of being debt free on an operating company basis by the end of the year bodes well for higher cash returns next year.</span>...<span class="sent"><span class="analyst">Ben Reitzes</span>, Barclays Capital: Reiterates an Equal Weight rating, while raising his price target to $26 from $24. "The higher cash flow guidance for the year and the possibility of being debt free on an operating company basis by the end of the year bodes well for higher c Tweet this   read full story

A recent report by Chicago based Consumer Intelligence Research Partners found that, for the first three months of 2013, 53 percent of those surveyed bought an iPhone 5, compared with 73 percent who bought the iPhone 4S in the same period after its launch. Ben Reitzes, an analyst at Barclays, wrote in a note to clients last week, "The reception of the iPhone 5 and execution of late has tested our patience.". Beyond just profit margins in the short term, analysts also worry that people like Macchiavello who buy older phones with less memory also are less likely to buy things such as music and applications. Indeed, Macchiavello said she had downloaded only 11 apps for her phone so far 
Share:  A recent report by Chicago based Consumer Intelligence Research Partners found that, for the first three months of 2013, 53 percent of those surveyed bought an <span class="company">iPhone</span> 5, compared with 73 percent who bought the <span class="company">iPhone</span> 4S in the same period after its launch.<span class="sent"> <span class="analyst">Ben Reitzes</span>, an analyst at Barclays, wrote in a note to clients last week, "The reception of the <span class="company">iPhone</span> 5 and execution of late has tested our patience.".</span> Beyond just profit margins in the short term, analysts also worry that people like Macchiavello who buy older phones with less memory also are less likely to buy things such as music and applications. Indeed, Macchiavello said she had downloaded only 11 apps for her phone so far....A recent report by Chicago based Consumer Intelligence Research Partners found that, for the first three months of 2013, 53 percent of those surveyed bought an <span class="company">iPhone</span> 5, compared with 73 percent who bought the <span class="company">iPhone</span> 4S in the same period after its launch.<span class="sent"> <span class="analyst">Ben Reitzes</span>, an analyst at Barclays, wrote in a note to clients last week, "The reception of the <span class="company">iPhone</span> 5 and execution of late has tested our patience.".</span> Beyond just profit margins in the short term, analysts also worry that people like Macchiavello who buy older phones with less memory also are less likely to buy things such as music and applications. Indeed, Macchiavello said she had downloaded only 11 apps for her phone so far. Tweet this   read full story

Apple had its first profit decline in a decade last quarter amid accelerating competition in mobile devices from Samsung Electronics Co. Using new debt to finance Apple's $55 billion addition to its plan to return cash to shareholders through 2015 with buybacks and dividends may require annual issuance of between $15 billion and $20 billion, Ping Zhao, an analyst at CreditSights Inc in New York, wrote in a report April 23. Apple would probably receive a "very attractive rate" for as much as $50 billion in new debt, Barclays Plc analyst Ben Reitzes wrote in a report last month. 
Share:  <span class="company">Apple</span> had its first profit decline in a decade last quarter amid accelerating competition in mobile devices from Samsung Electronics Co. Using new debt to finance <span class="company">Apple</span>'s $55 billion addition to its plan to return cash to shareholders through 2015 with buybacks and dividends may require annual issuance of between $15 billion and $20 billion, Ping Zhao, an analyst at CreditSights Inc in New York, wrote in a report April 23.<span class="sent"> <span class="company">Apple</span> would probably receive a "very attractive rate" for as much as $50 billion in new debt, Barclays Plc analyst <span class="analyst">Ben Reitzes</span> wrote in a report last month.</span>...<span class="company">Apple</span> had its first profit decline in a decade last quarter amid accelerating competition in mobile devices from Samsung Electronics Co. Using new debt to finance <span class="company">Apple</span>'s $55 billion addition to its plan to return cash to shareholders through 2015 with buybacks and dividends may require annual issuance of between $15 billion and $20 billion, Ping Zhao, an analyst at CreditSights Inc in New York, wrote in a report April 23.<span class="sent"> <span class="company">Apple</span> would probably receive a "very attractive rate" for as much as $50 billion in new debt, Barclays Plc analyst <span class="analyst">Ben Reitzes</span> wrote in a report last month.</span>...<span class="sent"><span class="company">Apple</span> would probably receive a "very attractive rate" for as much as $50 billion in new debt, Barclays Plc analyst <span class="analyst">Ben Reitzes</span> wrote in a report last month.</span> <span class="company">Apple</span>'s debt sale is coming more than nine years after the company cleared its balance sheet of bonds when the $300 million of 6.5 percent 10 year notes it sold in February 1994 matured. Tweet this   read full story