HP Inc (NYSE:HPQ) stock was up on Wednesday following an upgrade by Citi.
Citi analyst Jim Suva has upgraded HPQ stock from a “Neutral” rating to a “Buy” rating. Suva says that he expects the PC market to make a return. He cites positive results in global shipments of PCs from a recent IDC report.
In the recent IDC report, HP Inc performed especially well. The company shipped 13.1 million computers in the first quarter of the year and took the top market share. This is the first time it has done so since 2013. The company is starting to focus more on premium products and Suva believes this will lead it to further growth.
Suva also claims that positive movement in the U.S. economy may result in more consumers buying PCs. He points out the low unemployment rates and high consumer confidence as evidence that this may occur. The PC market has also seen its first increase in global shipments since 2012, which is a positive sign, reports CNBC.
Jim Suva has set a price target of $20 per share for HP Inc’s stock. He has also increased his earnings per share estimates for the company. He is now expecting HPQ to report earnings per share of $1.64 in 2017, $1.75 in 2018 and $1.79 in 2019. His old estimates were $1.59 in 2017, $1.64 in 2018 and $1.67 in 2019.
Suva’s earnings per share estimates for HP Inc are above the consensus estimates. Wall Street is expecting the company to report earnings per share of $1.61 in 2017 and $1.68 in 2018.
HPQ stock was up 2% as of noon Wednesday and is up 20% year-to-date.
