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Hewlett-Packard Co. (HPQ - Analyst Report) is now out with a host of new HP Officejet Pro inkjet printers targeting small and medium businesses (SMBs). Due to limited resources, SMBs always look for cost effective options. H-P’s highly scalable and cost optimized printers will be able to meet the increasing demand from the SMBs.

H-P’s Officejet Pro 8600 series is compatible with the HP Instant Ink service and mobile printing and other print management solutions. Together, these help SMB owners to improve the performance of their business.

HP Instant Ink is a cost-effective bundle that helps users to reduce complexities and data loss and also save up to 50% on ink thereby enhancing user experience and providing high-quality prints. Moreover, H-P’s mobile print technology enables wireless printing from smartphones, tablets and other mobile devices.

The new series of printers can be used as an efficient tool to improve process automation and reduce costs so that businesses can shift their focus to other sources of revenue generation.

The new HP Officejet Pro 8610 and HP Officejet Pro 8620 have been priced at $199 and $299, respectively. The printers will hit selected countries on Apr 7. We believe that the successful deployment of the new HP Officejet Pro inkjet printers will boost revenue growth for the company, going forward.

H-P’s printing revenues were down 2.2% year over year to $5.82 billion in the first quarter of fiscal 2014. We believe that H-P can revive the business and have a bigger share in the inkjet printer market with these new offerings.

Additionally, the company’s traction in the cloud, security and big data segments are positives, going forward. The company’s strategic focus on the software business will help it to achieve long-term profitability.

However, continuing macroeconomic challenges, tepid IT spending and competition from IBM (IBM - Analyst Report) and Oracle (ORCL - Analyst Report) are the headwinds, going forward.

Hewlett-Packard has a Zacks Rank #2 (Buy). A better-ranked stock in the technology sector Lexmark International Inc. (LXK - Analyst Report) is a better-ranked stock in the technology sector with a Zacks Rank #1 (Strong Buy).

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