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HP to Feed on Enterprise Spending Next Year: Tech Analyst

The world’s largest computer maker Hewlett-Packard is due to report its fourth quarter results after the bell on Monday. The company preannounced results earlier this month, but Mark Stahlman, partner at Signal Lake Ventures, and Jayson Noland, IT hardware senior analyst at Robert W. Baird, told investors what to expect for HP and the tech sector.

Earnings Central: HPQ

“It’s a little too early for the enterprise to be coming back…but by the first quarter of next year, we’re going to see that,” Stahlman told CNBC.

“So we’re going to see a combination of better-than-expected strength from [Microsoft] Windows 7 from the consumer side, and we’re going to begin to see a hint in the guidance of a very good year next year.”

Stahlman said he expects to see the company spend over $100 billion on data centers.

“HP is more consumer than Dell,” he said. “Dell’s primarily a PC business and it’s 60 percent enterprise, particularly North American enterprise, so it’s all a matter of the balance of the business by geography, type and customer, which makes them all quite different.”

In the meantime, Noland said HP has been cutting and lowering costs aggressively, which has helped position them well. He has an "outperform" rating on the firm.

“Their lower cost structure will allow them to continue to take share from Dell and others,” he said. “We’re going to see IT hardware dollars come back into corporate budgets next year and the company is positioned to benefit from that.”

Noland said he likes the storage sector, which is benefiting from the growth of data and new technologies.

“So companies like EMC, NetApp should benefit from IT hardware dollars coming back into corporate budgets also,” he said.

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Noland’s firm Robert W. Baird expects to receive or see investment banking related compensation from HP and Dell within the next three months.

No immediate information was available for Stahlman or his firm.