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NEW YORK (TheStreet) -- Hewlett-Packard Co. (HPQ) has come to a multi-billion dollar IT agreement with Deutsche Bank (DB) in which the investment firm will outsource a considerable part of its wholesale banking IT unit.

As part of the 10-year long agreement Hewlett-Packard, a company that provides products, technologies, software, and solutions to customers, will provide computing capacity and data storage to host Deutsche Bank's operations.

The deal with HP will allow Deutsche Bank to cut costs and offer customers new products and services much faster than before.

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The two companies issued a joint statement this morning but did not disclose the full value of the deal.

"This agreement enables Deutsche Bank to secure standardized, world-class IT infrastructure while lowering costs. Having a more modern and agile technology platform will further improve the Bank's ability to launch new products and services and lay the foundation for the next phase of its digital strategy," Deutsche Bank COO Henry Ritchotte said in a statement.

Shares of Hewlett-Packard are up by 0.50% to $38.38 in pre-market trading on Tuesday morning.

Separately, TheStreet Ratings team rates HEWLETT-PACKARD CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate HEWLETT-PACKARD CO (HPQ) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, HPQ's share price has jumped by 30.32%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HPQ should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • HEWLETT-PACKARD CO' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, HEWLETT-PACKARD CO's EPS of $2.62 remained unchanged from the prior years' EPS of $2.62. This year, the market expects an improvement in earnings ($3.95 versus $2.62).
  • The revenue fell significantly faster than the industry average of 30.7%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • HPQ's debt-to-equity ratio of 0.73 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.83 is weak.
  • You can view the full analysis from the report here: HPQ Ratings Report