Goldman Resumes Coverage On Hewlett-Packard At Sell

Goldman Sachs has published a research report on Hewlett-Packard Co. HPQ and has resumed coverage on the company at Sell. In the report, Goldman writes "We believe HP's increased focus on growth will require incremental operating expense investments, leaving gross margin, M&A, and revenue expansion as the key sources of profit growth. Unfortunately for HP, this path to growth brings greater potential volatility and uncertainty than the restructuring-led earnings expansion that has defined the HP story over the past five years. This could lead to earnings shortfalls and downward revisions as we progress through 2011. In addition, we believe the company will begin to lay out a more aggressive organic and inorganic investment strategy as the year progresses." Goldman has also issued a $38 price target on Hewlett Packard Co., which closed Friday at $42.62.