Forrester cuts 2009 ForecastBy Reuters | Print
On the heels of Wall Street's turmoil this week, Dell and Ingram Micro warned of weakening demand, saying that the crisis on Wall Street would hurt corporate and consumer spending.
Forrester Research forecast 2009 U.S. tech spending to grow 6.1 percent, weaker than its previous estimate of 9.4 percent, as the slowdown that it had expected to hit the first half of this year was now seen hitting in the second half of 2008 or first half of 2009. Forrester raised its 2008 tech spending growth estimate to 5.4 percent from 3.4 percent.
Analysts said HP could be a safe haven in this market as it had a diverse product line and could leverage on the EDS deal.
American Technology Research analyst Shaw Wu raised his 2009 earnings estimate for HP and wrote in a note to clients, "We continue to believe HP is positioned to weather the macroeconomic storm better than most."
Separately, Cisco Systems Inc (CSCO.O: Quote, Profile, Research, Stock Buzz) Chief Executive John Chambers affirmed the network equipment maker's long-term growth target, which it had recently fallen short of. Its shares ended up 1.9 percent.
(Additional reporting by Paul Thomasch in New York and Eric Auchard in San Francisco; Editing by Derek Caney, Gary Hill)
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