HP Inc. downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded HP Inc. (HPQ) to Underweight from Equal Weight with a price target of $24, down from $26. The firm believes the memory “supercycle” brings downside risk to hardware manufacturer earnings heading into 2026. The cycle is driving inflated input costs amid “tepid” non-artificial intelligence hardware demand trends, the analyst tells investors in a research note. Morgan Stanley downgraded a number of global hardware names, saying lower gross margins will lead to negative earnings revisions and multiple compression.