Stock Price & Analysis

Based on the provided data and current market conditions, here's a concise analysis for HPQ:

Technical Analysis

The stock is showing mixed signals with RSI at 49.16, indicating neutral momentum. HPQ recently closed at $33.33 with a regular market gain of +1.83%. The stock is trading slightly above its 20-day moving average of $33.01, suggesting short-term bullish momentum.

Analyst Consensus Recent analyst actions have been mixed to cautious:

• HSBC downgraded to Hold with $38 target (7.25% upside)
• Bernstein maintained Hold with $34 target (2.6% upside)
• JP Morgan maintained Buy with $41 target (11.78% upside)

Key Considerations

• PC market recovery expectations are being pushed out to later in 2025
• Higher input costs are pressuring PC margins in the near term
• The company maintains a solid 3.34% dividend yield
• AI PC penetration is increasing, with HP claiming leading market share in Windows AI PCs

Conclusion Based on current technical indicators, mixed analyst sentiment, and near-term margin pressures, HPQ appears fairly valued at current levels. The stock may trade sideways until there's more clarity on PC market recovery and margin improvements later in 2025.

Based on the provided data and market analysis, here is the price prediction for HPQ stock in 2025:

HPQ stock is expected to reach $38-40 by end of 2025, representing a ~15-20% upside from current levels of $33.33, driven by three key catalysts:

1. The Windows 10 end-of-life refresh cycle expected to pick up in late 2025 will drive significant PC upgrade demand.

2. HP's leading position in AI PCs, with over 15% of current shipments being AI-enabled devices, positions it well to capture the growing AI PC market momentum in 2025.

3. The company's operational discipline and focus on recurring revenue streams will help maintain stable margins despite competitive pressures.

However, investors should note some headwinds:

• Higher commodity costs and pricing pressure in the consumer segment could impact margins
• The printing business continues to face secular decline challenges
• Over $1 billion in debt matures in 2025 which may limit shareholder returns

The stock currently trades at an attractive 11x FY25 P/E ratio, about half of the S&P 500 multiple, providing valuation support for the upside target.

The S1 support level for HPQ Stock is $32.37 ,The R1 resistant level for HPQ Stock is $33.4.

As of the end of day on 2025-01-29, the price of HPQ Stock was $32.815.

The target price for HPQ Stock according to analyst rating is 37.23, with the highest price target at 44.00 and the lowest at 30.00. Analysts have a Hold rating on HPQ Stock overall.

The market cap of HPQ is $30.7B.

Based on the provided data and recent analyst reports, here's a comprehensive analysis of HPQ's valuation:

Valuation Analysis: HPQ appears fairly valued at current levels based on several key metrics:

• P/E ratio has increased from 8.4x to 12.6x over the past year, suggesting expanding valuation multiples
• EV/EBITDA ratio rose from 6.9x to 8.1x, indicating higher enterprise value relative to earnings
• Price-to-Sales ratio increased from 0.54x to 0.66x, still relatively modest compared to tech sector peers

Recent Performance & Fundamentals:

• Revenue growth has been modest but steady, reaching $14.06B in Q4 2024
• Net income improved from $622M to $906M in Q4 2024, showing strengthening profitability
• Gross margins remained stable around 21%, though slightly compressed from 22.9% earlier in 2024

Analyst Sentiment: Recent analyst actions suggest caution:

• HSBC downgraded to Hold from Buy with $38 target, citing cost pressures
• Bernstein maintained Hold rating with $34 target, viewing IT hardware as "structurally challenged"
• JPMorgan remains optimistic with $41 target and Overweight rating

Conclusion: HPQ appears to be overvalued at current levels due to:

1. Expanding valuation multiples despite modest growth
2. Ongoing cost pressures affecting margins
3. Structural challenges in the PC and printing markets
4. Mixed analyst sentiment with recent downgrades

HP Inc. is a global provider of personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services. The Company delivers a range of devices, services and subscriptions for personal computing, printing, three-dimensional (3D) printing, hybrid work, gaming, and more. It operates through three segments: Personal Systems, Printing and Corporate Investments. The Personal Systems segment offers commercial and consumer desktops and notebooks, detachables and convertibles, workstations, thin clients, commercial mobility devices, retail point-of-sale (POS) systems, displays, hybrid systems, software, solutions, and services. Printing segment offers consumer and commercial printer hardware, supplies, services, and solutions. Printing segment is also focused on graphics and 3D printing and personalization in the commercial and industrial markets. Corporate Investments include certain business incubation and investment projects.

Based on the provided data and analysis, here's a price prediction for HPQ stock by 2030:

HPQ stock is projected to reach $45-48 by 2030, driven by the company's strategic positioning in AI PCs and enterprise solutions. According to recent analyst reports, HP is betting big on AI-powered PCs and sees a bigger opportunity to differentiate its AI PC products compared to traditional PC markets, which could fuel growth in the latter half of this decade.

The printing segment's stabilization and potential market consolidation, combined with the Windows 10 end-of-life refresh cycle and increased AI PC adoption starting from 2025, provides multiple catalysts for sustained growth over the next 5 years.

HPQ has a total of 58000 employees.