Analyst Wamsi Mohan of Bank of America Securities reiterated a Hold rating on HP, retaining the price target of $29.00.
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Wamsi Mohan’s rating is based on a combination of factors that reflect both positive and challenging aspects of HP’s current financial situation. The company’s recent quarterly earnings exceeded expectations, driven by strong performance in the Personal Systems segment, particularly due to the adoption of AI PCs and favorable seasonal trends. However, the Print segment faced difficulties, with declining revenues attributed to macroeconomic pressures and competitive pricing, which offset some of the gains from the Personal Systems division.
Despite these mixed results, HP’s management remains optimistic about future growth, with guidance suggesting stable earnings and free cash flow projections. The company is also progressing with its Future Ready Plan, aiming for significant cost savings. Nevertheless, Mohan maintains a Hold rating, as potential earnings growth from share buybacks and revenue improvements in the PC segment may be counterbalanced by ongoing challenges in the Print segment, leading to a cautious outlook overall.
In another report released today, Barclays also maintained a Hold rating on the stock with a $27.00 price target.