Deutsche Bank Downgrades Hewlett-Packard (HPQ) to Sell; Juggling in a Wind Tunnel

Deutsche Bank downgraded Hewlett-Packard (NYSE: HPQ) to Sell with a price target of $20.00.

Deutsche analyst says, "HP delivered revs/non-GAAP EPS of $31.2B/$1.10, modestly above expectations (vs. DB at $31.1B/$1.08; Street at $31.2B/$1.09). However, another guidance cut, a rich, ill-timed acquisition and other strategic actions (potential PC spin-off, exit Palm, etc) raises red flags. We cut estimates to reflect deteriorating fundamentals (weak consumer PCs, lower services margins etc) and growing skepticism regarding HP's strategy. We cut the PT to $20 (5x CY12 EPS) and recommend investors Sell HP and switch into Apple (Nasdaq: AAPL) or IBM (NYSE: IBM)."

For more ratings news on Hewlett-Packard click here and for the rating history of Hewlett-Packard click here.

Shares of Hewlett-Packard closed at $29.51 yesterday.

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