Update shared on 12 Nov 2025
HP's analyst price target saw a modest reduction to $27 from $28, reflecting analysts' view that while the company delivered in-line Q3 performance, gross margins remain pressured by elevated tariff costs and a less favorable product mix.
Analyst Commentary
Recent commentary from Street researchers on HP Inc. highlights a balanced range of perspectives, reflecting both optimism and caution around the company's near-term prospects and valuation.
Bullish Takeaways- Bullish analysts point to HP's in-line fiscal Q3 performance, with notable strength observed in both commercial and consumer PC segments. This is seen as a sign of solid execution in its core business areas.
- Despite modest downward price target adjustments, overall ratings remain relatively stable. Current valuations are considered reasonable given the company's market position and demand trends.
- Resilience in end-market demand, particularly in PC categories, is expected to provide a foundation for potential growth even amid macroeconomic headwinds affecting broader IT hardware spending.
- Bearish analysts express ongoing concern over gross margin pressures, which remain impacted by elevated tariff costs and a less favorable product mix. This has led to slightly reduced forward estimates.
- Despite some stability in core revenue streams, the company's inability to offset cost headwinds in recent quarters raises questions about further upside in near-term profitability.
- HP's inclusion in recent sector research is accompanied by a Market Perform rating, reflecting a wait-and-see approach rather than high conviction in outsized growth relative to peers.
What's in the News
- Apple is preparing to launch a low-cost Mac laptop, aiming to compete directly with Chromebooks and entry-level Windows PCs, intensifying competition in HP's core PC markets (Bloomberg).
- An Associated Press investigation reports that HP and other major U.S. tech companies contributed to building China's digital surveillance infrastructure, raising questions around the use and responsibility of exported technology (Associated Press).
- HP announced new products, including the Series 5 Pro 14" Portable Monitor, the world's first Neo:LED commercial portable monitor, along with AI-powered workflow enhancements and expanded hardware offerings (Company release).
- Continuum Powders and HP are collaborating to accelerate high-performance alloy development for additive manufacturing, targeting aerospace and energy applications (Company release).
- Consumer365 recognized HP's All-In Plan as the top-rated printer subscription service for 2025, reflecting a trend toward service-based models in home and office printing (Consumer365).
Valuation Changes
- Consensus Analyst Price Target remains unchanged at $28.28, indicating stability in near-term fair value assessments.
- Discount Rate has risen slightly from 9.09% to 9.44%, reflecting a modest increase in perceived risk or required return by analysts.
- Revenue Growth projections show virtually no change and remain steady at approximately 1.41%.
- Net Profit Margin remains stable, with only a marginal decrease from 5.12% to 5.12%.
- Future P/E ratio has increased slightly from 11.62x to 11.73x, suggesting a minor upward adjustment in expected earnings multiples.
Disclaimer
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