HP, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Asiya Merchant from Citi maintained a Hold rating on the stock and has a $27.50 price target.
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Asiya Merchant’s rating is based on a combination of factors observed in HP’s recent performance and market conditions. The management’s outlook on the PC market shows improvement, with results surpassing expectations in personal systems and anticipated growth in the latter half of the year due to the AI PC ramp-up. Additionally, HP has achieved its fiscal year target for AI PC penetration ahead of schedule, which is a positive indicator for future momentum.
Despite these positive developments, there are areas of concern that warrant a Hold rating. The Office Print segment underperformed slightly, as customers are prioritizing hardware refreshes, leading to a lowered guidance. Although management expects an improvement in Q4 Print margins and operating margins due to cost-cutting and tariff mitigation, these efforts may only partially offset the challenges. Given these mixed signals, Asiya Merchant suggests a cautious approach, reflected in the Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $27.00 price target.