In its first trading session following the report, the company’s shares fell 8 percent on Thursday to close at $17.64. Despite the drop, Wu has a $31 price target, implying a 75 percent jump from Thursday’s closing price, and a “buy” rating on HP’s shares.
Wu said the ingredients for a successful turnaround include having an installed customer base and a growth plan and building a balance sheet.
“We think HP has the ingredients,” Wu said. “Also, Cisco is another name that we also use that in reference to. We think these companies have the ingredients necessary for a turnaround. Now there are other companies like RIMM and Nokia that don’t have quite those things so we think there’s a big distinction.”
Instead, RIM and Nokia “face much more dire futures,” Wu said.
Still, HP will not find the turnaround road instantaneous. Instead, it will be more of a long-term one, another analyst predicts.
“There’s going to be bumps along the road,” said Brian White, a senior analyst at Topeka Capital Markets. “The macro is a risk. They have the biggest Europe exposure of any company that I cover at 36 percent of revenue.”
—By CNBC.com's Katie Little; Follow Her on Twitter @katie_little
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