Wamsi Mohan, an analyst from Bank of America Securities, reiterated the Hold rating on HP. The associated price target remains the same with $26.00.
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Wamsi Mohan has given his Hold rating due to a combination of factors affecting HP’s financial outlook. The company reported a stable fourth quarter, with revenues surpassing expectations and earnings per share aligning with guidance. However, future projections are tempered by anticipated increases in memory costs, which are expected to impact earnings in the latter half of fiscal 2026. Management has acknowledged these challenges and is implementing cost mitigation strategies, such as sourcing from lower-cost suppliers and adjusting product configurations.
Despite these headwinds, HP’s restructuring initiative aimed at achieving significant cost savings by fiscal 2028 provides some optimism. The Personal Systems segment showed strength with revenue growth driven by higher average selling prices and an increased mix of AI PCs. Nevertheless, operating margins are expected to face pressure due to rising memory costs. The Print segment is projected to maintain stable revenues and strong margins, yet overall growth is likely to be constrained by industry-wide challenges. As a result, the price objective remains at $26, reflecting a cautious but balanced outlook.
According to TipRanks, Mohan is a 5-star analyst with an average return of 18.4% and a 60.94% success rate. Mohan covers the Technology sector, focusing on stocks such as Apple, Dell Technologies, and HP.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $25.00 price target.