PC and printer maker Hewlett-Packard Company (HPQ) on Tuesday caught some negative commentary from analysts at Jefferies & Co.

The firm maintained its “Hold” rating on HPQ and lowered its price target from $23 to $21. That new target implies a smaller 7% upside to the stock’s Monday closing price of $19.55.

Jefferies also cut its earnings estimates for the company, citing several factors:

• Softening PC demand over the past month,
• Tablet competition from Microsoft (MSFT),
• Competition from Chinese I.T. firm Huawei (which is a Windows 8 launch partner),
• Risks that OEMs may not initially embrace new Windows 8 hybrid tablet/notebooks, and
• A cautious outlook on Windows 8′s real impact on PC demand.

Hewlett-Packard shares posted small gains in premarket trading Tuesday.

The Bottom Line
Shares of Hewlett-Packard (HPQ) have a 2.71% dividend yield, based on last night’s closing stock price of 19.55. The stock has technical support in the $16 price area. If the shares can firm up, we see overhead resistance around the $22 price level.

Hewlett-Packard Company (HPQ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.