Bank of America Securities analyst Wamsi Mohan has reiterated their neutral stance on HPQ stock, giving a Hold rating on December 3.
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Wamsi Mohan has given his Hold rating due to a combination of factors concerning HP’s financial outlook and strategic initiatives. The company is facing a significant increase in memory costs, which are expected to rise by 40% to 50% year-over-year, impacting the earnings per share by $0.30 in fiscal 2026. To mitigate these costs, HP is leveraging its existing inventory, qualifying new suppliers, and utilizing pricing strategies as a last resort.
Moreover, HP has initiated a new restructuring program aimed at achieving $1 billion in gross run-rate savings by the end of fiscal 2028, with a focus on using AI to enhance productivity and reduce costs. Despite these efforts, Mohan maintains a neutral stance as the expected earnings growth from share buybacks and potential revenue increases from PC refreshes may be counterbalanced by the rising memory costs. The price objective remains at $26, based on a 9x multiple of the estimated earnings per share for 2026.
In another report released on December 3, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $26.00 price target.