H-P Hits New High, Sees PC Boost

Hot on the heels of Intel's results, H-P is also in line for a PC revenue boost.
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PALO ALTO, Calif. (

TheStreet

) -- Hot on the heels of

Intel's

(INTC) - Get Report

strong results

earlier this week,

Hewlett-Packard

(HPQ) - Get Report

, whose shares have risen more than 55% in the last 12 months, hit a

52-week high of $54.64

on Wednesday.

The tech giant, which reports its second-quarter results next month, has been

attracting attention from investors

keen to tap into future growth and is expected to reap the benefits of improved tech spending.

"We have been commenting about strong tech trends for the past six months," wrote Louis Miscioscia, an analyst at Collins Stewart, in a note released on Thursday. "We are raising our numbers on H-P, mainly due to better growth and ASPs in PCs, along with strength in servers."

Miscioscia now expects H-P to earn $4.55 a share and post revenue of $124 billion in fiscal 2010, up from his prior estimates of $4.46 a share and $123 billion.

H-P, which completed its

acquisition of 3Com

earlier this week, has also been feeling the love from tech research firm

Gartner

, which released its latest PC figures on Wednesday.

During the first quarter, worldwide PC shipments grew 27.4% year-over-year, according to the research firm, with H-P enjoying almost 20% growth. Gartner cites H-P as the dominant force in the PC arena, with 18.2% market share, although this dipped from 19.3% in the same period last year.

"H-P continued to be the leader in worldwide PC shipments, but its growth was below the worldwide average," said Gartner in a statement, explaining that Asian rivals such as

Acer

and

Lenovo

pose a threat. "However, H-P's strength could be apparent as the professional market rebounds," it added.

Last month H-P

revised its first-quarter results

as a result of long-standing litigation related to its EDS division, but its second-quarter is starting to look rosy.

"After Intel's results, and Gartner posting

first-quarter PC growth estimates, we believe trends are even better than we'd thought previously," wrote Collins Stewart's Miscioscia. "Other pockets of H-P's business should also be experiencing positive trends - most likely printing/supplies

and software, with services lagging so far in the pickup."

H-P, which competes with

Apple

(AAPL) - Get Report

and

Dell

(DELL) - Get Report

in the computer market, is also planning to launch its own

tablet computer

later this year. Dubbed the Slate, H-P's device will

go up against the iPad

.

Analysts are already starting to draw comparisons between the two devices, notably H-P's decision to support

Adobe's

(ADBE) - Get Report

Flash technology on its tablet, something that the iPad lacks.

In news unrelated to products, H-P hit the headlines Thursday when the

Wall Street Journal

reported that the company is under investigation by authorities in Germany and Russia as part of a bribery inquiry.

"This is an investigation of alleged conduct that occurred almost seven years ago, largely by employees no longer with H-P," explained an H-P spokeswoman in an email to

TheStreet

. "We are cooperating fully with the German and Russian authorities and will continue to conduct our own internal investigation."

The company's stock dipped 37 cents, or 0.68%, to $54.15 on Thursday despite a modest rise in the broader tech market that saw the Nasdaq rise 0.2%.

-- Reported by James Rogers in New York

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