UPDATE: Jefferies Downgrades Hewlett-Packard to Underperform on Secular and Cyclical Challenges

Jefferies reduced its rating on Hewlett-Packard

from Hold to Underperform and lowered its price target from $17 to $14. Jefferies commented, "We continue to see cyclical and secular headwinds for HP's PC, services, and printer businesses. Also, we believe HP will aggressively attack the smartphone and tablet markets, which we believe are risky investments. We maintain our Street-low FY13 EPS of $3.58 (St $4.22), and cut our FY13 FCF estimate from $7B to $5.7B, and cut our target from $17 to $14." Hewlett-Packard closed at $17.11 on Wednesday.