Wamsi Mohan, an analyst from Bank of America Securities, reiterated the Hold rating on HP (HPQ – Research Report). The associated price target is $33.00.
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Wamsi Mohan has given his Hold rating due to a combination of factors influencing HP’s financial outlook. The anticipated shift in revenue dynamics, particularly in the Personal Systems segment, suggests a more balanced revenue distribution throughout the year. This change is driven by demand adjustments ahead of potential tariff impacts, which could affect production costs if HP accelerates its plans to move manufacturing out of China.
Additionally, while there is potential for revenue and operating margin improvements from PC refresh cycles, these may be offset by lower margins in the Print segment. Tariffs and the concentration of manufacturing outside the U.S. pose risks to margins, although currency fluctuations and cost-saving measures might mitigate some of these effects. Consequently, the price objective has been adjusted slightly lower, reflecting these mixed prospects.
In another report released on May 21, Morgan Stanley also maintained a Hold rating on the stock with a $29.00 price target.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HPQ in relation to earlier this year.