UPDATE: Bank of America Color on Hewlett-Packard Target Decrease

Bank of America, which lowered its PT on Hewlett-Packard Company HPQ, reports that while it has been tempting to downgrade the stock from its Buy rating, “we view low valuation, a reset of expectations, and extremely negative sentiment as positives.” “Execution is needed before investor sentiment works again, which may take 2-4 quarters – hence, patience is required,” Bank of America writes. “F2Q11 EPS of $1.24 beat our/Street $1.21, but F3Q11 EPS guidance of $1.08 was below our/Street of $1.25/1.23 (lower margin and revenue) and F2011 EPS is now “at least” $5.00 (from $5.20-5.28). We view the company maintaining its F2014 EPS target of $7 as a stretch goal.” Hewlett-Packard closed Tuesday at $36.91.