The tech giant's currently in the throes of a major restructuring effort as CEO Meg Whitman attempts to get the company back on track.
"With HP, our view is that the headline news just cannot get much worse," wrote analyst Mark Moskowitz. "A positive turnaround in the model is likely to be measured in years, though, and we continue to think that HP faces an uncertain growth profile."
Sprint (S), however, was a premarket laggard following downgrades from JP Morgan and UBS. The telecom giant's stock was down 2.2% to $5.79.
JP Morgan downgraded Sprint to neutral from overweight, citing decelerating revenue, even after its merger with Softbank ."While we continue to believe that Sprint has the assets and now financial backing to succeed in the wireless space, 2013 looks like a year of heavy capital investment and uncertain subscriber momentum," wrote analyst JP Morgan analyst Philip Cusick. "With more downside than upside risk for the next 3-6 months we prefer to back away at this level and may look to come back later in the year." UBS also downgraded Sprint to neutral from buy. Analyst John Hodulik warned that the company's shares could remain range bound in the near term given expectations for lower fourth-quarter profitability, lower EBITDA and higher capital expenditure outlook in 2013, as well uncertainty about the company's merger with Clearwire (CLWR). Apple (AAPL) was another premarket laggard, falling 3.42% to $502.5 on share volume of 334,478. Research In Motion (RIMM), shares, however, gained 0.37% to $13.61 on share volume of 165,832. --Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV