Hewlett-Packard Worth $32, Bets On Australian Growth

HPQ: Hewlett logo

Hewlett-Packard (NYSE:HPQ) unveiled a new $200 million data-center located in Eastern Creek, New South Wales in a bid to gain market-share in the Australian cloud market. The facility is named Aurora and is a highly secure facility designed to meet the growing demand for cloud services in the country.
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Senator Stephen Conroy launched Hewlett-Packard’s new $200 million data-center and was joined by HP South Pacific MD David Caspari and HP South Pacific enterprise services VP Alan Bennett. HP plans to relocate existing clients to the new facility as well as look for new business to be serviced out of the facility. The first phase of the facility consists of ~27K square feet of technical floor-space which caters to major clients that include Origin Energy, Downer and Elders Australia. It also unveiled plans to expand this to nearly ~150K square feet of technical floor-space at the site to offer the Australian government and private sector cloud and managed services. [1]

HP Services constitute ~40 percent of its current Trefis Price Estimate. If the Australian economic growth drives infrastructure outsourcing revenues from our current projected level of ~18 billion by the end of our forecast period to ~20 billion by 2018, we can expect an upside of ~5% to our current Trefis Price estimate.

We currently have a $32 Trefis price estimate for HP, which is around 40% above of the current market price.

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  1. HP Data Centre Opened At Eastern Creek, www.blacktownsun.com.au, June 14, 2012 []