Tigress Financial Cites Hewlett-Packard's 'Underwhelming' Results In Downgrade

In a report published Friday, Tigress Financial Partners analyst Ivan Feinseth cited Hewlett-Packard Company's (NYSE: HPQ) "underwhelming" first quarter results and lower full year earnings guidance as reasons to downgrade shares to Neutral from Buy."Q1 results were underwhelming, the company missed street expectations on revenue and lowered full year earnings guidance, signaling substantial currency headwinds for the remainder of their fiscal year," Feinseth wrote. "Subsequently, Hewlett-Packard announced the acquisition of Aruba Networks which we view as an incremental positive, but ultimately view the transaction as too small to make a significant impact on the company's lackluster performance metrics."Feinseth also noted that the company's 1.7 percent sales decline places it in the bottom 25th percentile of growth, substantially below the industry average and market median. Moreover, the company's EBITDAR and margin and Economic Profit Momentum Margin are also under-performing not only its peers but the analyst's 2,200 company universe.Bottom line, the analyst concluded that the company's debt levels are "negatively impacting the company's risk" and that investors can find better opportunities for returns in the technology space.