HP shares up this morning as shock therapy sets in. Share prices for the tech giant opened 6% higher ($1.59) to $25.16 in the US and are currently up 3.96% to US$24.54.
HP share price rose higher than any other company today on the Dow Jones Industrial Average, which was up more than 170 points overall, according to MarketWatch.
Auriga analyst, Kevin Hunt, who branded Hewlett Packard’s decision last Thursday to ditch its hardware and PC business in favour of software and cloud computing, including the $11 billion plus purchase of UK software giant Autonomy, as a “mess,” but raised his rating to ‘buy’ from ‘hold.’
Following the announcement last week, as well as Q2 underwhelming earnings, HP shares plunged 20 percent on Friday to US$23.60, erasing about $12 billion in market value and leaving the stock near six-year lows.
Shares at the WebOS creator are down 40% since the beginning of the year and it is unclear who would be in a position to buy the troubled PC giant, who is still the top PC maker, globally.
Lenovo, Dell or even Smasung have all been tipped.
But “even a mess can eventually have value,” he wrote in an note to investors this morning and also rebuked Leo Apotheker, HP’s Palo Alto boss and his senior management team.
“We would not take this as an opinion that HP is a great company or that we have any faith in the current management team,” he added.
“We don’t think either of those is the case. H-P is still a mess. But even a mess can have some value embedded within it, and this exercise suggests to us that there is enough value here to warrant owning some H-P shares.”
Oracle, Intel and Cisco also made slight gains on the Dow this morning.