Personal computing giant HP Inc. (HPQ) is considering shifting some of its manufacturing to the U.S. due to President Donald Trump’s tariffs and pressure on corporations to invest domestically. According to CEO Enrique Lores, the company is looking into the possibility of this move, but no decision has been made.
One of the key challenges when it comes to restoring U.S. operations is the rebuilding of the supply chain. Lores noted that it’s not just about assembling products but also about bringing component manufacturers and suppliers on board. Nevertheless, HP sees the benefits of local production, which include reduced costs and faster response times to customer demand.
Interestingly, HP’s plans to diversify its supply chain are already underway. Indeed, less than 10% of goods sold in North America are expected to come from China by the end of its fiscal year. This shift has been driven by rising component costs on top of U.S. tariffs on Chinese imports. While the company still faces challenges, its diverse supply chain has helped reduce the impact.
Is HPQ Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HPQ stock based on three Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 10% rally in its share price over the past year, the average HPQ price target of $37.75 per share implies 24.7% upside potential.
