UPDATE: Bank of America Downgrades Hewlett-Packard to Neutral

Bank of America has published a research report on Hewlett-Packard HPQ that downgraded the company from Buy to Neutral. In the report, Bank of America wrote, "After HP's Analyst Day where we saw another step down in EPS and a further push out in recovery of HP's balance sheet and FCF, we are downgrading the stock to Neutral. We have clearly underestimated the scope of and time required for HP's turnaround. While we found greater details provided by management on HP's turnaround strategy and long-term growth expectation to be helpful, execution, timing, and company fundamentals are clearly more challenged than we originally assumed. Under this scenario, while valuation is attractive, it may not provide support and HP's significant valuation discount will likely persist." Bank of America also lowered its price objective from $22 to $16.50 on Hewlett-Packard, which is currently trading down 2.35 percent from Wednesday's $14.91 closing price.