On Friday, Investment firm Evercore ISI removed information technology giant HP (NYSE:HPQ) from its tactical Outperform list. As a result, company shares edged lower at the time of writing.
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The analysts, led by Amit Daryanani, said the catalyst that led to the Outperform rating in the first place–HPQ’s earnings report–has since passed. Indeed, HP saw a solid performance in the quarter, with revenue and EPS in line with analysts’ expectations.
Additionally, the business reiterated its guidance, highlighting that the first quarter will continue to see difficult but stable demand conditions. Despite lower-than-expected first-quarter expectations, Evercore was encouraged by HPQ’s “impressive margins,” which will help it defend its profitability.
The analysts remarked, “Given the strong (free cash flow) expected in FY24, we think there could be solid uplift from buybacks.” Nevertheless, Evercore has a Hold rating on HPQ with a $33.00 price target.
Is HPQ a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on HPQ stock based on four Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 9.93% increase in its share price so far this year, the average HPQ price target of $30.25 per share implies 5.68% upside potential.
