UPDATE: Hewlett-Packard Still in Early Innings of Turnaround, Pacific Crest Says

Shares of

are moving higher by 2.2 percent to $32.91 thanks to an upgrade from Pacific Crest and rumors the company could

using

Android software. Pacific Crest analyst Brent Bracelin upgraded the stock from Sector Perform to Outperform and announced a $37 price target. The upgrade is based on "increased confidence in profit recovery from a seven-year low led by operating margin expansion, enterprise share gains, and stabilizing PC trends." Hewlett-Packard is “still in the early innings of a multi-year turnaround,” according to Bracelin. Bracelin raised the FY2014 and FY2015 earnings estimates by $0.05 and $0.09 to $3.75 and $3.96 respectively. The $37 price target is based on “a target P/E of 9x the 2015 estimates...and assumes only slight multiple expansion from FTM P/E 8.6x.”