UPDATE: Citi Raises PT to $35 on Hewlett-Packard

A report from Citi reiterates its Buy rating and raises its price target from $28 to $35 on Hewlett-Packard (NYSE: HPQ).

The report states, “Our modeling suggests that FY12 non-GAAP EPS guidance of “at least $4.00” represents the “kitchen sinking” of guidance that most were waiting for before considering a rotation back into the name. Multiple headwinds notwithstanding, our modeling suggests that management's guidance leaves ample room to ramp investments, clear channel inventories and still deliver consistent, meaningful upside for the next several quarters.”

HPQ closed yesterday at $26.86.