HP, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Krish Sankar from TD Cowen maintained a Hold rating on the stock and has a $28.00 price target.
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Krish Sankar has given his Hold rating due to a combination of factors impacting HP’s performance. The company reported results that met expectations, with encouraging signs in the PC market, particularly with the adoption of Windows 11 and AI PCs. However, while the PC segment showed strength, the printing division faced challenges with declining margins and competitive pricing pressures from Japanese peers.
Despite the positive outlook for the PC market, with potential growth in the coming quarters, the printing segment’s performance remains a concern. The decline in operating margins for the printing division, influenced by seasonal factors and competitive pricing, suggests potential headwinds. Additionally, while HP’s cost mitigation strategies are expected to offset some tariff impacts, the overall revenue growth projections for the printing segment remain negative. These mixed signals contribute to the Hold rating, indicating a cautious stance on HP’s stock performance.
According to TipRanks, Sankar is a 5-star analyst with an average return of 18.7% and a 59.64% success rate. Sankar covers the Technology sector, focusing on stocks such as Apple, Applied Materials, and MKS.
In another report released today, Barclays also maintained a Hold rating on the stock with a $27.00 price target.