NEW YORK (TheStreet) -- Shares of Hewlett-Packard (HPQ) were up 0.54% to $36.99 in afternoon trading Wednesday after CEO Meg Whitman said the IT company is back in position to consider takeover options three years after the Autonomy disaster.
The company's near-record amounts of cash allow it to pursue an acquisition, and "the worst sales forecast among computer peers provides the motivation for HP to buy its way to more competitive products," according to Bloomberg.
Whitman's remarks come three years after HP bought data-analysis company Autonomy, which ultimately led to an $8.8 billion writedown and numerous shareholder lawsuits.
Bloomberg speculates Teradata could be a potential acquisition target. Raymond James Financial (RJF) suggests SimpliVity, while Sterne Agee thinks data protection company Imperva (IMPV) could be in play.
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 some important positives, 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, revenue growth, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."