Growth in long-term fundamentals should outweigh short-term headwinds for HP , according to Bank of America. The bank double upgraded shares of the technology company to a buy from underperform rating Tuesday. It also lifted its price target to $33 from $25. The new forecast points to more than 28% upside potential from HP's Monday closing price of $25.67. Shares of HP are down more than 4% since the start of the year. The stock has also fallen 23% since hitting a closing high for the year in mid-July, with the S & P 500 down 5% during that same period. This "recent material underperformance" gives HP an attractive valuation, wrote analyst Wamsi Mohan. HPQ YTD mountain HPQ ytd chart Despite a weaker near-term macro backdrop due to softer demand in China and rising competition from Japanese peers, Mohan pointed to HP's strong fundamentals as catalysts for the upgrade. The analyst cited tighter cost controls, growth from an improving PC outlook and increased operating profit dollars. "In our opinion, this multiple is justified given it balances near-term pressures the company is facing vs. long term opportunities," he wrote. "[Positive] drivers include an improving PC market backdrop, improved profitability from cost actions and stable to higher free cash flow over the next several years." Besides a recovering PC outlook and cost actions that should improve profitability, as another tailwind, Mohan also highlighted HP's shift to a higher upfront profitability model in the printing industry. — CNBC's Michael Bloom contributed to this report.