Analyst from Broadpopint AmTech on Wednesday reiterated a buy rating for Hewlett-Packard Co in its note to clients, expecting the company to give a strong fiscal report next Monday in accordance with its preliminary outlook.

HP, the No. 1 PC maker and the world's largest supplier of technology products, gave better-than expected preliminary fourth quarter result last week. While revenue was down 8 percent to $30.8 billion compared to the same quarter a year ago, earnings were up from 84 cents per share a year ago to 99 cents per share.

It also raised its fiscal 2010 outlook to $29.9 billion in revenue and earnings between $1.03 and $1.05 per share.

But the company provided little detail with Chairman and CEO Mark Hurd stating only that the quarter was fueled by significant growth in China.

HP's valuation is attractive despite continued outperformance, according to Dinesh Moorjani, analyst at Broadpopint AmTech.

Though HP shares have outperformed the NASDAQ over the past three, six, and 12 months, the shares remain attractively valued, Moorjani said in the note.

HP, helped by its recurring revenue streams and exposure to the consumer market, has been taking share in both servers and PCs in faltering economy. The recent 3Com deal, according to Moorjani , makes a lot of strategic sense as it'll not only more than double HP's networking revenue but also increases HP's exposure to the rapidly growing Chinese market.

As the PC and server markets bottomed in the first quarter of 2009 and a recovery in enterprise IT spending still lies ahead, pent-up PC demand on the corporate side should lead to a PC upgrade cycle, potentially in 2010, with Windows 7 and new Intel platforms serving as catalysts, Moorjani wrote in the note.

Therefore, HP, which has been gaining share across PCs, servers and networking, is likely to see further share gains with the company's strong enterprise IT product portfolio.

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