Technology giant HP (NYSE:HPQ), at its investor day on Tuesday, brought out its drawing board to showcase its financial report card and let investors know they plan to buy back shares. Wall Street analysts that weighed in on the matter said the move is “key,” with some noting its upside potential.
Wells Fargo analyst Aaron Rakers said the company’s implied decision to start buying back stock again is an “incremental positive.” Rakers made these statements in a note to investors, adding that the updates could be considered a “net positive.”
Meanwhile, the company had some optimistic projections for its financial targets at the event. HP said it sees a total addressable market for PCs of $537B by 2026, spurred by hybrid work and artificial intelligence. It expects these factors to drive sales in the latter part of 2024 and beyond.
Citi analyst Asiya Merchant shared similar optimism with the company and said the fiscal targets for 2024 indicate a possible “improvement” in operating income for the company. The analyst added that the potential growth expected in the PC segment will help the company offset the struggling Print market.
However, Bernstein analyst Toni Sacconaghi said the company may be aiming too high with its fiscal targets. The analyst noted that 2 to 4% long-term revenue growth is “ambitious.” Instead, he said 0 to 2 % would have been a more comfortable revenue growth range.
Is HP a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on HPQ stock based on two Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average HPQ price target of $30.18 per share implies a 13.08% upside potential.
