HP Inc. downgraded to Neutral at BofA on print margin reversion

As previously reported, BofA analyst Wamsi Mohan downgraded HP Inc. to Neutral from Buy with an unchanged price target of $37. The rating change is predicated on the view that any EPS growth will come purely from share buybacks as potential upside from PCs, including AI PCs, should be offset by lower print margins given that company has been “over-earning in printing,” the analyst tells investors. The firm, whose analysis suggests that it will be hard for HP to drive “material positive estimate revisions,” notes that it lowered its own estimates “modestly.”