UPDATE: Deutsche Bank Downgrades Hewlett-Packard to Sell

Deutsche Bank is out with its report today on Hewlett-Packard HPQ, downgrading HPQ to Sell from Hold. In its report, Deutsche Bank writes, "HP delivered revs/non-GAAP EPS of $31.2B/$1.10, modestly above expectations (vs. DB at $31.1B/$1.08; Street at $31.2B/$1.09). However, another guidance cut, a rich, ill-timed acquisition and other strategic actions (potential PC spin-off, exit Palm, etc) raises red flags. We cut est's to reflect deteriorating fundamentals (weak consumer PCs, lower services margins etc) and growing skepticism regarding HP's strategy. We cut the PT to $20 (5x CY12 EPS) and recommend investors Sell HP and switch into Apple APPL or IBM IBM." At the time of posting, shares of HP were trading pre-market at $51.50, down 1.44% from Thursday's close.