HP Underperform Maintained as Analyst Cites Weaker PC Outlook and Margin Pressure; $16 Price Target Reaffirmed

Bank of America Securities analyst Wamsi Mohan maintained a Sell rating on HP yesterday and set a price target of $16.00.

Wamsi Mohan has given his Sell rating due to a combination of factors related to HP’s outlook and competitive position. He expects the company to trim its fiscal 2026 guidance as rising memory costs, a CEO transition, and mixed PC market dynamics pressure earnings, with performance likely tracking toward the low end of management’s prior range. Preliminary industry data also indicate that HP has been ceding market share in both U.S. and global PCs, even as overall industry unit demand has remained healthy year to date.

Mohan highlights that any near-term strength in PC demand may be partly driven by pull-forward and that steep OEM price increases could weigh on volumes in the second half of calendar 2026, limiting unit growth. He further notes that higher memory pricing is squeezing Personal Systems margins and expects profitability to remain below the company’s long-term target range, with Print strength insufficient to offset weaker PC economics, leading him to keep a $16 price target unchanged and maintain an Underperform view.

Based on the recent corporate insider activity of 33 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.