Diamonds and Dogs
Blue chip techs continue to shine. Hewlett Packard (HPQ) is jumping 8% to a new 52 week high following better than expected earnings. The company beat earnings estimates while sales rose 3.6% to $12.68 billion ahead of estimates of $11.83 billion. The company continues to report strong free cash flow while also benefitting from innovative products while printer supplies business is showing signs of stabilization. HP received two upgrades this morning, but the price targets are only $19 a share.
The power of two downgrades. Highflier chipmaker, Nvidia (NVDA) is down 10% or $11 retesting the December and January lows on two downgrades. Analyst Romit Shah at Instinet downgraded Nvidia to reduce from buy. Shah also slashed his stock price target to $90, which is 11% below current levels, after raising it to $100 from $80 just two weeks ago. BMO Capital analyst Ambrish Srivastava dropped his rating to underperform from market perform. He cut his stock price target to $85, or 16% below current levels, after raising it to $100 from $75 less than three weeks ago.