Market Update (NYSE:HPQ): Blackstone nears deal to buy HP Enterprise stake in India’s MphasiS: sources

[Reuters] – Blackstone Group LP (BX.N) is nearing a deal to acquire HP Inc’s (HPQ.N) controlling stake worth about $940 million in Indian IT outsourcing services provider MphasiS Ltd (MBFL.NS), according to three sources directly involved in the deal. HP owns roughly 60.5 percent stake in MphasiS, and the U.S.-based parent had been looking to exit from the Indian venture to shore up its capital, as it struggles with weak demand for PCs and printers. Bids for buying the MphasiS stake were submitted earlier this month and the U.S. private equity firm has emerged as the front-runner for taking majority ownership of the mid-sized Indian IT services exporter, the sources said. Read more on this. HP Inc. (HPQ) , with a current value of $20.24B, started the session at $11.62. Today’s price range has been between $11.59 and $12.25 per share with its 52-week range being $8.91 to $16.17. Priced at 7.17x this year’s forecasted earnings, HPQ shares are relatively inexpensive compared to the industry’s 7.41x forward p/e ratio. And for those looking to make a return holding the stock, the company pays shareholders $0.50 per share annually in dividends, yielding 4.32%. In a review of the consensus earnings estimate this quarter, 23 sell-side analysts are looking at $0.38 per share, which would be $0.49 worse than the year-ago quarter and a $0.02 sequential decrease. The full-year EPS estimate is $1.59, which would be a $1.59 better than last year. The quarterly earnings estimate is predicated on a consensus revenue forecast of $11.76 Billion. If reported, that would be a 53.79% decrease over the year-ago quarter. More recently, Wells Fargo downgraded HPQ from Outperform to Market Perform (Jan 7, 2016). Previously, FBN Securities Initiated HPQ at to Sector Perform. Investors should keep in mind is that the average price target is $13.55, which is 16.61% above where the stock opened this morning. See more in (NYSE:HPQ) Similar Articles: Stock Update (NYSE:HPQ): HP Enterprise Climbs On Upbeat Q1, Full-Year Forecast Stock Update: Hewlett-Packard Company (NYSE:HPQ) – Should You Invest in Shares of HP or Hewlett Packard Enterprise? Stock Update (NYSE:HPQ): Hewlett Slips: ‘Enterprise’ Sets $3B Buyback Plan After Dell’s $67B EMC Buy