Despite HP insisting that it must converge under ‘One HP’, an analyst report from UBS has said the company would be better off if it was broken up into a division that sells hardware and another which looks after businesses.
According to Bloomberg, which has seen the report, UBS analysts claim that the company would be worth more than $20 a share if its businesses operated independently. At the moment a second hand HP share can be picked up for $14.46 if you know where to look.
Penned by Steven Milunovich, the report said that HP, with its fully developed enterprise and consumer businesses, should split up in order to realise greater value.
He said that HP’s units were whales packed into the same pond.
CEO Meg Whitman said she won’t spin off the PC business, a move contemplated by her predecessor, Leo Apotheker.
UBS said the computer company would lose purchasing power in a breakup, while gaining “focus” and branding power. However, HP has dismissed the report saying that its operations across business units are deeply integrated and its customers have told it that they want One HP.
UBS thinks that the company might not have a choice as investors might force HP to break up.
HP is in denial about the growth prospects for PCs and possibly printers, the fact is that HP has substantial assets, Milunovich wrote.