NEW YORK (TheStreet) -- Hewlett-Packard Co (HPQ) had coverage initiated on its shares with a "buy" rating at Deutsche Bank (DB).
The firm set a price target of $40 on the company's shares.
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Hewlett Packard is up 2.9% to $33.66 in early market trading on Thursday.
Deutsche Bank believes that the computer maker has stabilized itself since its near collapse a couple of years ago and that its IT portfolio is well positioned to be a player in the sector in the future.
"HP is mid-way through a 5-year turnaround, and thus far has done a good job of stabilizing the business. Now the company needs to prove it can expand. While the company does have a higher mix of declining segments like PCs and printers, we believe HP's IT hardware portfolio is well positioned for the next phase of IT, with strength in converged infrastructure and Big Data," Deutsche Bank said.
Separately, TheStreet Ratings team rates HEWLETT-PACKARD CO as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HEWLETT-PACKARD CO (HPQ) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and attractive valuation levels. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."