NEW YORK (TheStreet) -- Shares of Hewlett-Packard (HPQ) are getting a boost, higher by 1.9% to $38.03 in early market trading on Wednesday, after the computer hardware company had its price target raised to $46 from $40 by analysts at Citigroup this morning.
Analysts at the firm maintained its "buy" rating on shares, citing its "non-consensus view" that PCs will grow again in the next two-to-three years.
The firm said they increased its price target on the tech giant after transitioning to a sum-of-the-parts valuation model with the company's break up in less than 12 months.
Citigroup noted that its new price target reflects the potential value of HP's software and services businesses.
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, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow."