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<p><strong><font size=”5″>HP’s Debt Rating Downgraded to ‘Deteriorating'</font></strong></p>
<p><font size=”4″> Citing the continuing deterioration of <a href=”http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=hpq”>Hewlett-Packard</a>‘s business, the credit research firm <strong>Gimme Credit</strong> this morning cut its rating on the ailing tech giant to “deteriorating” from “stable.”</font></p>
<p><font size=”4″>“Revenue declines are accelerating, with weakness across all segments except software,” writes <strong>analyst Dave Novosel</strong>. “Free cash flow is dropping because of the massive restructuring charges, while debt reduction is being offset by the weaker EBITDA. Management has admitted that the turnaround may take several years.”</font></p>
<p><font size=”4″>Novosel adds that not only is revenue declining, but the drop is accelerating.</font></p>
<p><font size=”4″>“Revenue is falling in every segment except software,” he notes. “And things are likely to get worse before they get better. Part of the problem is cyclical, as with the decline in PC sales. Part of is executional, as with the services segment. Free cash flow will suffer from massive restructuring charges. However, it should be robust enough to reduce debt. Yet EBITDA is also falling with the revenue declines and margin pressure. Since management has characterized fiscal 2013 as a fix and rebuild year and 2014 as a year of recovery, we do not expect a turnaround anytime soon. In the meantime, investors may have to contend with substantial headline risk.”</font></p>
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<font size=”2″><a href=”http://www.streetinsider.com/Analyst+PT+Change/Deutsche+Bank+Downgrades+Canon+%28CAJ%29+to+Hold/7920402.html”>http://www.streetinsider.com/Analyst+PT+Change/Deutsche+Bank+Downgrades+Canon+%28CAJ%29+to+Hold/7920402.html</a></font><br />
<font size=”5″><strong>Deutsche Bank Downgrades Canon (CAJ) to Hold</strong></font><br />
<font size=”4″><a href=”http://www.streetinsider.com/entities/Deutsche+Bank” class=”entitylink”>Deutsche Bank</a> downgraded Canon (NYSE: <a href=”http://www.streetinsider.com/stock_lookup.php?q=CAJ”>CAJ</a>) from Buy to Hold and cuts its target price from Yen 3,080 to Yen 2,900.<br />
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The firm comments, “Although we expect a diminishing impact from inventory correction for laser printers, and expect </font> <font size=”4″><a href=”http://www.streetinsider.com/entities/Earnings” class=”entitylink”>earnings</a> recovery, we estimate that the stock’s current level generally prices in such earnings improvement, likely leaving only limited upside potential. We think renewed upside would require a scenario for long-term earnings growth.”<br />
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For an analyst ratings summary and ratings history on Canon </font> <font size=”4″><a href=”http://www.streetinsider.com/rating_history.php?q=CAJ”>click here</a>. For more ratings news on Canon <a href=”http://www.streetinsider.com/stock_lookup_news.php?q=CAJ&type=analyst”>click here</a>.<br />
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Shares of Canon closed at $35.95 yesterday, with a 52 week range of $29.81-$48.48.</font></p>
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