Four Hardware Stocks Upgraded by Goldman

Technology giant Dell was raised to conviction list buy from neutral by Goldman Sachs Friday, due to its significant operating leverage and its ability to capitalize on the corporate PC upgrade cycle.

Goldman also raised its overall view on the U.S. hardware sector to attractive from neutral, adding that the outlook for IT spending looked encouraging.

Hewlett Packard, Seagate Technology and Apple were also upgraded by Goldman.

Hewlett Packard now has a price target of $47 per share, up from $39, due to a rebound in its printer business and second-half PC seasonality, Goldman said. Apple now has a Goldman price target of $160, up from $145 per share.

The investment bank said it also favors Arrow Electronics based on its operating leverage and stock underperformance.

Both IBM, Western Digital and CA were cut to neutral from buy.

- Reuters contributed to this report.