In a recent report, Brean Capital analyst gave their take on the outlook for the computer hardware business. Brean analysts are “very bullish” on several stocks in the space.
What Is Apple Up To?
Analysts expect that Apple Inc. AAPL 1.66% could announce a notebook-sized iPad at the June World Wide Developers Conference.
In addition, analysts are calling for an Apple PC refresh later than other names, possibly in the second half of 2015.
Anecdotal descriptions of Apple’s latest PC that Brean analysts have heard include praise such as “bullet-proof” and “rocket fast.” Analysts believe the new Apple PC could have a battery life of 140 hours in standby mode.
Time To Buy
Analysts think that Western Digital Corp WDC 0.02%‘s guidance is currently on the conservative side and that 2015 earnings could surprise to the upside.
Specifically, analysts see a greater than $61 average selling price (ASP) for Western Digital in the March quarter versus the company’s guidance of a $58 ASP.
Analysts see less upside for Seagate Technology Public Limited Co STX 0.61%‘s earnings outlook. However, they believe that the company’s share repurchase program will still provide some lift for the stock.
Analysts see the recent pullback in shares of Hewlett-Packard Co HPQ 0.56% as a buying opportunity, as there has been no fundamental change to the long-term outlook for the company.
Analysts feel that HP will continue to outgrow a solid PC market and predict that PC sales can account for more than half of HP’s free cash flow moving forward.
Price Targets
Brean Capital has Buy ratings on Western Digital, Seagate and HP.
The analysts have price targets on the three stocks of $150, $83 and $45 respectively.
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