UPDATE: UBS Lowers PT on Hewlett-Packard on Revenue Growth Prospects

In a report published Thursday, UBS analyst Steven Milunovich reduced the fall 2013 and price target on

from $3.80 to $3.55 and from $28 to $24 per share, respecitively. Milunovich stated the expectation of lower 3Q results and the company's “backing off on the prospect of revenue growth in F14." Fall 2014 EPS has fallen to $3.55 versus an estimated $3.56 in 2013. Further reductions in PCs, printers and enterprise could interfere with HP's earnings. UBS analysts also note lower free cash flow next year ($7B vs $8B). The analyst notes that positive changes in management will take time and cost reductions in 2014 may “boost to profit of about $0.75[...]Non-financing net debt should be zero by year end, allowing HP to boost the dividend by 10%, at least double the buyback to around $3bn, and begin to acquire again to fill strategic holes.” Hewlett-Packard closed at $22.27 on Wednesday.