Morgan Stanley Believes Strategic Action Unlocks Value For Hewlett-Packard Company

In a report published Tuesday, Morgan Stanley analyst Katy L. Huberty reiterated an Overweight rating and $40.00 price target on Hewlett-Packard Company (NYSE: HPQ).

In the report, Morgan Stanley noted, “The plan to split into two companies sharpens focus on significant valuation discount even post the last two years of outperformance and affords a more efficient capital allocation. We view disruption risk as much more muted compared to 2011 given several structural changes under Meg Whitman's leadership.”

Hewlett-Packard Company closed on Monday at $36.87.