UPDATE: Barclays Upgrades Hewlett-Packard

On Tuesday, Barclays upgraded shares of Hewlett-Packard (NYSE: HPQ) from Equalweight to Overweight and raised the price target from $33 to $38.

Analyst Ben Reitzes believes the company could “gain share for several quarters in x86 servers at the expense of IBM/Lenovo, which could also help support sales of 3PAR storage gear.”

Reitzes compares Hewlett-Packard's 2014 potential earnings per share upside, should HP “win share in the x86 market,” to the boost Lenovo received after bought out IBM's PC business in 2005.

The analyst also notes Hewlett-Packard's free cash flow recovery and believes the company is “well positioned for growing buybacks and dividends as it returns ‘at least' 50% of free cash flow to shareholders.”

Shares of Hewlett-Packard are up two percent to $30.09. The stock has had trouble getting through the $30 figure during the past few months.