Moreover, BofA is hiking its FY15 and FY16 EPS estimates on expectations of rising services margins. BMO observes H-P expects services margin to grow in FY15 even though signings are set to drop 6%-8% in FY14.
Morgan Stanley is focusing on H-P's improving top-line: It points out annual revenue growth was positive for the first time in 2.5 years, and views recent PC, x86 server, and networking strength as "sustainable medium-term."
Goldman, which finally upgraded H-P to Neutral in June, says it's still cautious due to long-term concerns. "Non-PC revenue and gross margin expansion will become increasingly important as we transition into 2015."
Shares have made fresh multi-year highs.