Jefferies cuts HP on weak PC business, risk from mobile push

Jefferies & Co downgraded Hewlett-Packard Co (HPQ.N: Quote) to "underperform" from "hold," saying it continued to expect problems in the company's personal computer, services, and printer businesses.

The world's largest personal computer maker has been struggling with shrinking PC sales as consumers opt for smartphones and tablets, tough economic conditions in Europe and slowing growth in China.

HP recently wrote down $13.9 billion in assets related to its purchase of Electronic Data Systems Corp.

Jefferies also said it expects HP to aggressively invest in the smartphone and tablet markets, which may be risky, and cut its price target on the company's stock to $14 from $17.

Shares of the company, which closed at $17.11 on the New York Stock Exchange, were down 1.4 percent at $16.87 in premarket trading on Thursday.

Read Full Article from Reuters Canada

- Posted: 2012-09-27 15:15:57

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