UPDATE: Bank of America Reduces PO to $22 on Hewlett-Packard on Revenue Drop

Bank of America reiterated its Buy rating on Hewlett-Packard (NYSE: HPQ) and cut its price target from $24 to $22. Bank of America said, "F3Q12 results were consistent with HP's positive pre-announcement, and despite the company's somber commentary on the overall demand environment, F4Q12 EPS outlook was barely below Street. HP is facing growing macro headwinds and unfavorable competitive dynamics across its transactional businesses. This, coupled with various company-specific issues, should hamper revenue growth in the near term, although restructuring should provide support to EPS in our view. We believe HP is taking steps in the right direction, albeit small, and that current valuation discounts much of macro/secular/turnaround concerns."Hewlett-Packard closed at $19.20 on Wednesday.