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HP's U.S. market share, 28 percent, is the company's highest first-quarter mark, Raymond James noted.
"This performance, in our opinion, suggests the fallout from the August 18 announcement that it might exit the PC business has eased," wrote Raymond James' Alexander. "We believe HP is rebuilding momentum with the channel based on our conversations with resellers and distributors and note that Meg Whitman is doing a nice job communicating and executing on channel commitment. Recent channel policy changes that de-emphasize direct sales are resonating."
In addition, Alexander wrote that HP's decision to combine its Personal Systems Group and the Imaging and Printing Group should make it easier to do business with HP, rectifying a common complaint from the channel.
"These factors should not be underestimated given the majority of HP's sales go through the channel and recent uncertainty about HP's PC business, channel commitment and ability to execute have contributed to dismal results," Alexander wrote.