Sterne Agee Comments on Potential Hewlett-Packard Merger

In a research report published earlier today, Sterne Agee commented on the recent press reports indicating that Hewlett-Packard Company

is getting ready to merge its PC and printer businesses. Sterne Agee said in the report, “While we believe there is room for cost synergies, we are not sure of the strategic benefits as we believe each has a unique business model. We continue to rate HPQ shares Buy as we anticipate share appreciation as investors get more confident with the company's ability to stabilize its business and improve its balance sheet.” Sterne Agee maintains its Buy rating and $34 PT on Hewlett-Packard, which closed yesterday at $23.98.