Hewlett-Packard shares climb on Jefferies upgrade

NEW YORK (AP) ? Hewlett-Packard Co. shares rose 4 percent Friday after an analyst upgraded the stock, saying the computer hardware maker has a compelling valuation.

THE UPGRADE: Jefferies upgraded shares of HP to “buy” from “hold.”

THE MARKET TRENDS: The firm said that while disappointing back-to-school sales have intensified weak consumer spending on PCs, enterprise spending continues. Jefferies added that HP faces four to six quarters of investment in tablets and cloud services to offset the cannibalization of its PC, server and services businesses.

THE NUMBERS: Jefferies raised its fiscal 2012 earnings estimate for Hewlett-Packard to $5.98 per share from $5.83 per share.

SHARE ACTION: Hewlett-Packard shares ended up $1.27 at $32.32 Friday.