Home NewsStock Market News PC demand is faltering and HP has been downgraded by analysts and haggled, and its stock price fell nearly 3% | Anue Juheng

PC demand is faltering and HP has been downgraded by analysts and haggled, and its stock price fell nearly 3% | Anue Juheng

by WOOWinvest
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PC demand is faltering and HP has been downgraded by analysts and haggled, and its stock price fell nearly 3% | Anue Juheng


Hewlett-Packard (HPQ-US) was downgraded by analysts on Friday (19th), and the stock price fell nearly 3%.

Wells Fargo analyst Aaron Rakers downgraded HP to “underweight” from “equal weight” and lowered his price target to $30 from $35, citing concerns about weak PC demand.

Rakers wrote: “While we remain positive on HP’s strong free cash flow and continued execution to drive a richer product portfolio (e.g. business PCs, consumer high-end/gaming and peripherals), we see PC fundamentals improving Deterioration, and HP’s printer business is quite sensitive to the macro economy.”

HP fell 2.84 percent to close at $34.23 a share on Friday, after falling in after-hours trading. HP shares are down 9.13% so far this year, but they are still up 21% over the past 12 months.

A representative for HP, which is scheduled to report earnings on Aug. 30, did not immediately respond to a request for comment.

Analysts have slashed their PC demand forecasts in recent months after the pandemic subsided, as consumers accelerated upgrades to their home devices during the coronavirus pandemic, appearing to be buying ahead of demand that should have been set aside.

“PC weakness is well known, but we believe a return to normal post-pandemic levels remains highly debated,” Rakers wrote.

Rakers lowered HP’s revenue forecast for fiscal years 2022, 2023 and 2024 to $63.4 billion, $60.4 billion and $62.2 billion from $65.9 billion, $63.8 billion and $65.2 billion, respectively.

“We think it’s increasingly likely that HP shares will underperform for the rest of the year and into 2023,” he said.

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