Shares of HP (NYSE:HPQ) are outperforming today, while Dell (NYSE:DELL) shares are recovering from a weak opening. This can be attributed to a ratings change from an analyst. Samik Chatterjee of J.P. Morgan upgraded HPQ from Hold to Buy while assigning a price target of $35 per share. Conversely, he downgraded DELL from Buy to Hold with a $47 price target.
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Chatterjee pointed to HP’s cost cuts as a catalyst that will boost its financials. In addition, he anticipates that a recovery in the PC market will benefit HP more than Dell. As a result, Chatterjee increased revenue estimates for HP from $54.8 billion and $56 billion in 2023 and 2024, respectively, to $55.9 billion to $57.2 billion.
It appears that Chatterjee is going against the grain with his call. Overall, Wall Street analysts have consensus price targets of $29.71 and $46.77 on HPQ and DELL stocks, respectively. This implies a downside potential of over 3% for HPQ and over 7% upside for DELL, as indicated by the graphic above.
