Analysts believe Fiorina, a former Lucent exec, will bring new ideas and a fresh outlook to a company considered somewhat stodgy and weighed down by bureaucracy. He expects Fiorina to bulk up the services business and speed the flow of innovation from HP Labs to the company's computing and printer units. Analysts are also pleased that board member Richard Hackborn has agreed to become chairman at Fiorina's request. HP has faltered for much the same reason the entire tech sector has stumbled in recent days. HP's stock has come very far, very fast in the past six months.
Prospects are pretty bright.
Part of the problem with the stock now is that there may not be much in the way of promising developments in the near term. The next earnings report isn't until mid-August. And Milton believes changes Fiorina implements won't show up in financial results for about a year. But changing HP's stodgy public image could go a long way toward attracting more investors, believes Mona Eraiba, an analyst with Gruntal who rates the stock a strong buy. That's where Fiorina could make a big difference.