HP’s Financial Outlook and Revised Target Price: A Neutral Hold Recommendation

Citi analyst Asiya Merchant has maintained their neutral stance on HPQ stock, giving a Hold rating today.

Asiya Merchant’s rating is based on several factors surrounding HP’s recent financial performance and future outlook. The company’s shares experienced a decline following weaker than anticipated earnings and a downward revision of their fiscal year 2025 outlook. Although revenue slightly exceeded expectations, higher than expected tariff-related costs and adjustments to the supply chain negatively impacted earnings.
Additionally, the revised outlook reflects a more conservative view of the PC industry’s growth, now anticipated to be in the low single digits year-over-year. Despite expectations for improved operating margins in the upcoming quarters, the target price for HP’s stock has been adjusted to $27.50, maintaining a neutral stance. The company’s financial results, including lower gross margins and adjusted EPS, further support the Hold rating given the current market conditions.

In another report released today, Barclays also maintained a Hold rating on the stock with a $28.00 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.