UPDATE: FBN Securities Reiterates Sector Perform Rating, Raises PT on Hewlett-Packard Company on Signs of Stabilization

In a report published Friday, FBN Securities reiterated its Sector Perform rating on Hewlett-Packard Company HPQ, and raised its price target to $20.00. FBN Securities noted, “We reiterate our Sector Perform rating and raise our PT to $20. According to CEO Whitman, 2012 was a year of diagnosis, 2013 is a fix and rebuild year, and 2014 will be a recovery and expansion year. Revenue declined in all segments except Financial Services Y/Y, and the company has chances of growing in F2014 as Ms. Whitman suggests. However, the company will continue to face challenges from the PC business even in F2014, so we are currently modeling flattish revenue growth next year. We are impressed by the company's FCF generation ($1.9B) which led to the company reducing its operating net debt level by $1.1B to $4.7B.” Hewlett-Packard Company closed on Thursday at $20.14.