HP, Inc. (NYSE:HPQ) shares are trading more than 3% higher intra-day today after JPMorgan upgraded the company to Overweight from Neutral and raised its price target to $35.00 from $30.00. The upgrade is based on the expectation of a strong recovery in the Personal Systems (PS) segment, which is expected to be accompanied by resilient revenue and margins in the Print segment.

According to the analysts, HP, Inc. has undertaken several initiatives to improve the structural margin of the Print segment. They believe that this improvement will help offset some of the expected margin moderation in the Print segment in the upcoming quarters.

Although there may be some margin moderation in the Print segment due to improving supply, the analysts believe it will be more muted than previously feared on a better supply-demand balance.