Brean Murray Carret Maintains Hold on Hewlett-Packard Post Q1, Increased Guidance

Brean Murray Carret remains Hold rated with no price target on Hewlett Packard (NYSE: HPQ).

Brean Murray Carret comments, "HP's multiyear restructuring plan is expected to generate run rate cost savings of approximately $3bn to $3.5bn exiting fiscal year 2014 partially by cutting off 27,000 workers by the end of fiscal year 2014, while minimal savings impact is expected in Jul Q, with the majority of the FY12 savings impact in Oct Q. Besides the cost savings from headcount reductions, the company also expects further non-labor savings from supply chain efficiency and price and promotion strategy. According to the company, the majority of the savings from restructuring will be reinvested into business to foster innovation, particularly in cloud, Big Data analytics, information management, and security."

HPQ closed at $21.08 on Wednesday.