Hewlett-Packard (HPQ) rallied 2.4% on Tuesday after J.P. Morgan analysts issued a bullish report on the PC maker.

Analysts at the bank upgraded H-P to "overweight" from "neutral" and hiked its price target to $35 from $30.

In a research note to clients, J.P. Morgan said H-P’s turnaround challenges kept the bank from being more bullish since upgrading the stock to neutral in January. But now analysts believe those challenges are easing.

J.P. Morgan noted that PC sales are bottoming, while declines in printer sales also appear to be slowing.

Late last month, H-P reported weaker fourth-quarter sales but beat Wall Street estimates for both the top and bottom lines.

Shares of H-P were trading 65 cents higher at $27.55, adding to an 89% gain on the year through Monday’s close.

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