Wells Fargo analyst Aaron Rakers thinks that Xerox's (XRX) increased cash and stock offer of $24 per share for HP Inc. (HPQ) will likely force HP management to seriously consider allowing Xerox's request for three weeks of due diligence, raising the likelihood of a combination of the companies. As he's previously written, Rakers believes that a takeover of HP would require a bid of over $25 per share and he views Xerox's run-rate synergy target of $2B by year three as "ambitious." Rakers maintains an Equal Weight rating on HP Inc. shares with a $22 price target.

In the firm's Q1 letter to investors, David Einhorn's Greenlight Capital disclosed new long positions taken during the quarter, including taking stakes in HP Inc. (HPQ), Penn Entertainment (PENN) and Roivant Sciences (ROIV). In the letter, the firm stated that it established a new "medium-sized position" in Penn at an average price of $22.69 per share, arguing that "were the market to credit PENN with merely 15% of DraftKings' value, [Penn's ESPN BET] segment alone would be worth $20 per share." On HP Inc., Greenlight stated that it had established an initial position at an average price of $30.76 per share, adding that it believes "that we are, at a minimum, on the cusp of a normal PC refresh cycle, which should drive earnings above estimates." On Roivant, Greenlight said it had established a "small long position," adding that "in addition to an exciting pipeline, ROIV has a strong track record of positive trial results and successful monetization of pharmaceutical assets." Einhorn's Greenlight Capital also noted that it reduced its Teck Resources (TECK) long position into strength during Q1 and that the firm bought a "small position" in Liberty Global (LBTYA) during Q1.

Ferrari (RACE) announces that Ferrari S.p.A. has signed a multiyear partnership agreement with HP Inc. (HPQ), through which its brand will appear on racing properties of Scuderia Ferrari.

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Expects 2024 adjusted operating margin of at least 7.5%. Maintains three-year target of $300M of incremental adjusted operating income above 2023 levels and a return to double-digit adjusted operating income margin by 2026.