HP (HPQ – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Erik Woodring from Morgan Stanley maintained a Hold rating on the stock and has a $29.00 price target.
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Erik Woodring’s rating is based on a combination of factors that reflect both potential growth and underlying risks for HP Inc. While there is an increase in revenue and EPS estimates for FY25-26, these figures remain slightly below earlier forecasts. The company’s Personal Systems segment likely outperformed due to a pull-forward in PC demand, but there is uncertainty surrounding management’s guidance for the second half of FY25, which could impact overall growth.
Additionally, the Print segment underperformed in the first quarter, and there is a need to closely monitor supplies performance due to the absence of a tariff exemption. Although HPQ could potentially accelerate cost reductions to mitigate second-half risks, this would require more operational expense discipline than seen in previous years. The price target has been adjusted to $29, reflecting an 8x multiple on the new FY26 EPS estimate of $3.67. The balanced risk-reward profile supports maintaining a Hold rating.
Woodring covers the Technology sector, focusing on stocks such as Apple, Seagate Tech, and Dell Technologies. According to TipRanks, Woodring has an average return of 2.4% and a 55.98% success rate on recommended stocks.
In another report released on May 15, Citi also maintained a Hold rating on the stock with a $29.00 price target.
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