In a rally, HP share values increased by as much as eleven percent for the fourth quarter of 2012. This prompted at least eight brokerage houses to raise price forecasts over the stock but market analysts say that the worst is still to come for the company.
The former world no. 1 maker of personal computers underwent austerity measures under the aegis of CEO Meg Whitman, in light of the shrinking PC market and other factors affecting the IT market.
Among the brokerages that modified their forecasts is UBS investment, raising its price target to US$17 from US$12. JP Morgan Chase raised its own price targets to from US$21 to US$22. This was prompted overall share values to increase 11.05% to US$18.99 with a high of US$18.09, outperforming Dow Jones Industrial Averages in 2013. This was further buoyed by the buyout offer from Dell.
The current PC market is now in a state of flux after market shares plummeted on shrinking markets after customers flocked to the tablet and mobile markets.
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