- After assuming coverage for the name, UBS analyst David Vogt initiates HP (NYSE:HPQ) with a Buy rating and $25 price target.
- The analyst says HP's "conservative" balance sheet and strong cash conversion creates a "self-help" opportunity in enterprise hardware.
- Vogt thinks HP's near-term operating headwinds are understood, and he sees the stock as undervalued.
- UBS also initiates Dell (NYSE:DELL) at Buy with an $80 price target citing the "depressed" valuation and the benefits of the potential VMware spin-off.
- Dell shares are up 0.8% AH to $66.87. HP shares are up 2.1% to $18.82.