Does HP's (HPQ) Alloy Partnership Reveal a New Phase in Additive Manufacturing Ambitions?

• Earlier this month, Continuum Powders announced a cooperation agreement with HP Additive Manufacturing Solutions to accelerate high-performance alloy development for metal 3D printing, focusing initially on the OptiPowder M247LC superalloy for aerospace and energy markets.
• This collaboration leverages HP's expertise in binder jet additive manufacturing and Continuum's sustainable metal powder production, establishing a scalable pathway for developing future advanced alloys.
• We'll examine how HP's expanding additive manufacturing capabilities through this partnership could influence the company's growth and innovation narrative.

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HP Investment Narrative Recap

To be a shareholder in HP right now, you need to believe the company can transition beyond its traditional print and PC roots, finding new growth in areas like additive manufacturing and advanced materials. The recent agreement with Continuum Powders for high-performance alloys highlights HP’s push into industrial 3D printing, but this development is not likely to materially shift the company’s most immediate catalyst, potential PC demand from the Windows 11 upgrade cycle, or offset the ongoing risk of structural decline in printing and hardware segments.

Among recent news, the steady declaration of cash dividends remains relevant for investors focused on income, especially with HP’s commitment to returning capital even during business transitions. While additive manufacturing partnerships may open new markets in the long term, dividend consistency speaks more directly to near-term shareholder value in the context of the company’s mature segments.

Yet, it is important to remember that while HP’s investments offer new possibilities, persistent headwinds in the core print business remain a risk investors should not ignore, particularly as...

Read the full narrative on HP (it's free!)

HP's narrative projects $56.8 billion revenue and $2.9 billion earnings by 2028. This requires 1.3% yearly revenue growth and a $0.3 billion earnings increase from $2.6 billion currently.

Uncover how HP's forecasts yield a $28.28 fair value, a 3% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s fair value estimates for HP range from US$14.68 to US$38 across four viewpoints, showing a wide gap in expectations. Given the considerable risk that HP’s core print segment faces ongoing declines, you may want to weigh these varied perspectives when evaluating the company’s trajectory.

Explore 4 other fair value estimates on HP - why the stock might be worth 46% less than the current price!

Build Your Own HP Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your HP research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free HP research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate HP's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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