Collins Stewart Notes Management Changes at Hewlett-Packard (HPQ)
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Price: $19.46 +0.62%
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12 Buy, 23 Hold, 6 Sell
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Rating Summary:
12 Buy, 23 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Collins Stewart is maintaining its Hold rating and $40 price target on shares of Hewlett-Packard (NYSE: HPQ) following the announcement of of changes in the management team.
CIO Randy Mott will no longer be with the company. Mr. Mott was must known for cutting the company's IT costs from 4 percent of its annual sales to under 2 percent. Chief administrative officer Pete Bocian will also be departing as his position will be consolidated away. Last, Ann Livermore, prior EVP of Enterprise Business, will be moving to the Board, and giving up her day-to-day operational responsibilities.
Todd Bradley, EVP of the PSG group will take over cross-functional responsibility for growing HP's presence in China and Vyomesh Joshi, EVP of the IPG business, will lead HP's charge in India.
The new management system now has Dave Donatelli, EVP of Enterprise Servers, Storage, Networking and Services, Bill Veghte EVP of Software, and Jan Zadak EVP of Global Sales reporting directly to the new CEO Leo Apotheker.
The firm comments, "all of these changes take time to show results as each organizational change requires adjusting or re-formulating the plan and then executing against it. Besides the time this process takes, there is no guarantee that the new strategy will deliver the desired results."
For more ratings news on Hewlett-Packard click here and for the rating history of Hewlett-Packard click here.
Shares of Hewlett-Packard closed at $34.65 yesterday.
CIO Randy Mott will no longer be with the company. Mr. Mott was must known for cutting the company's IT costs from 4 percent of its annual sales to under 2 percent. Chief administrative officer Pete Bocian will also be departing as his position will be consolidated away. Last, Ann Livermore, prior EVP of Enterprise Business, will be moving to the Board, and giving up her day-to-day operational responsibilities.
Todd Bradley, EVP of the PSG group will take over cross-functional responsibility for growing HP's presence in China and Vyomesh Joshi, EVP of the IPG business, will lead HP's charge in India.
The new management system now has Dave Donatelli, EVP of Enterprise Servers, Storage, Networking and Services, Bill Veghte EVP of Software, and Jan Zadak EVP of Global Sales reporting directly to the new CEO Leo Apotheker.
The firm comments, "all of these changes take time to show results as each organizational change requires adjusting or re-formulating the plan and then executing against it. Besides the time this process takes, there is no guarantee that the new strategy will deliver the desired results."
For more ratings news on Hewlett-Packard click here and for the rating history of Hewlett-Packard click here.
Shares of Hewlett-Packard closed at $34.65 yesterday.
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