HP’s analysts remain cautious as macro concerns challenge near-term potential – HP (NYSE:HPQ)

  • credit Suisse Analyst Shannon Cross downgraded HP Inc hpq From Outperform to Neutral with a price target of $33.
  • Cross believes that revenue and margins are challenged in the near term by weakening consumer sentiment, which accounts for ~50% of PC revenue.
  • She also expects pressure on ASPs due to lower demand and better supply, a part of margin expansion that began in 2019.
  • She predicts the impact of slowing enterprise demand for PCs and printing as IT budgets prioritize hybrid cloud, security and software solutions.
  • She also emphasizes the macroeconomic uncertainty affecting purchasing decisions for 3D printing and commercial prints.
  • citigroup Analyst Jim Suva maintained a neutral on HP and lowered the price target from $33 to $31.
  • He’ll hear from PC and enterprise infrastructure vendors over the next two weeks.
  • Weak environment in PC, smartphone and printer device end demand amid macroeconomic, regional and inflationary concerns in recent results will likely remain important areas of focus.
  • Enterprise infrastructure demand remains an area of ​​relative strength (Lenovo Group Limited LNVGY), given the high backlog levels.
  • But recently mixed comments Cisco Systems, Inc. csco on weak sequence growth and Advanced Micro Instruments, Inc. amd And Dell Technologies Inc Ditch The past quarter is notable with respect to order strength and enterprise being more cautious.
  • He believes that macro concerns could significantly impact infrastructure demand in the coming quarters.
  • Backlog and order visibility will be areas of focus and cash generation/capital return.
  • They cut estimates on HPQ and Dell based on weak PC positions.
  • Price Action: Last Check Friday HPQ shares traded down 0.31% at $29.34.

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