Hewlett-Packard PC and Services Weakness to Hurt Stock in NT

According to J.P. Morgan, shares of Overweight-rated Hewlett-Packard

are to come under pressure in the near term. J.P. Morgan said that enterprise systems (servers, storage, and networking) performance was stronger than expected, but it was more than offset by weakness in PCs and services. “The near-term stock performance could be bumpy owing to a reset to revenue growth at a time when investors are not taking kindly to any decliners. We expect the pain to be rendered temporary, though, as HP's models should benefit from an increasing mix shift to the enterprise and a resilient operating margin profile.” Hewlett-Packard closed yesterday at $48.23.