UPDATE: Jefferies Initiates Coverage On Hewlett-Packard

Jefferies initiated coverage on Hewlett-Packard Company (NYSE: HPQ) with a Hold rating and $38 price target in a report issued on Thursday.

Analysts led by James Kisner "like the strategic moves and innovation we’ve seen from the company since Meg Whitman was named CEO late 2011. In principle, we also like the split up of the company into two more focused entities."

Other analysts have shared similar views on the split.

Kisner was "still a bit cautious on HP as both resultant businesses risk some potential disruption from the separation in the near term and also continue to face secular challenges in the long term."

The report noted that the firm's "bias is somewhat positive but we’re inclined to look for a better entry point."

The firm's EPS estimates were $3.56 for 2013, $3.71 for 2014 and $4.01 for 2015. The report cited a P/E Valuation of 9.7x for 2014 and 9.0x for 2015.

Hewlett-Packard Company recently traded at $33.60, down 2.1 percent.