The Zhitong Finance app learned that Citi raised its rating on HPQ.US on Monday because the investment bank predicted “continuous improvement” in the personal computer (PC) sector, and that the company's further cost cuts would increase its profit margin and profitability.

Asia Melchart, an analyst at the bank, adjusted HP's rating from “neutral” to “buy,” and pointed out that with the adjustment of inventories in the PC sector, the market seems to resume growth. Furthermore, in the long run, the development of artificial intelligence technology is expected to drive higher revenue growth, particularly in the field of edge computing.

Merchart also said that Citi sees significant cost reduction opportunities for HP. At the same time, the company's current valuation is low, and the potential for free cash flow is high, which helps promote stock repurchase plans.

However, Melchart also pointed out that HP may face some pressure, including Berkshire Hathaway's continued reduction in shares in the PC giant, and a decline in profit margins due to falling average sales prices and rising costs.

Overall, when it comes to HP, analysts are generally more cautious. The authors of Seeking Alpha gave a “buy” rating, while Wall Street analysts generally hold the ratings.

As of press release, Hewlett-Packard rose nearly 2% to $28.15 in the pre-market period.