Jefferies Initiates Coverage On Hewlett-Packard With Hold Rating

According to Jefferies, Hewlett-Packard HPQ coverage is initiated with Hold rating. Jefferies said that HP faces 4-6 quarters of investment in tablets and cloud services to offset the cannibalization of PCs, servers, and services. “Our $40 target is based on 7x our FY12 EPS estimate, below peers' 12x on CY12E and below HP's two-year historical NTM range of 7x-11x with an average of 9x.” Hewlett-Packard closed yesterday at $35.29.