UPDATE: Bank of America Cuts PO to $14 on Hewlett-Packard on FQ1 Outlook

Bank of America reiterated its rating on Hewlett-Packard HPQ and lowered its price objective to $14 per share. Bank of America said, "Looking beyond HP's in-line F4Q12 results, a sharp 40% Q/Q drop in F1Q13 EPS implied by HP's outlook ($0.68-0.71 vs. our/Street prior $0.84/0.86) suggests that industry fundamentals and company execution remain challenged. While the reaffirmed F2013 EPS outlook of $3.40-3.60 is encouraging, it implies a sizeable EPS ramp in F2H13 amid market and execution challenges. We maintain our cautious stance on HP's near-term outlook and model F2013E EPS below the company outlook at $3.25." Hewlett-Packard closed at $11.71 on Tuesday.