CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our price target by $1 to $17, 6x our FY 27 (Oct.) EPS view ($2.83), below HPQ's three-year historical average (~8x) given structural headwinds and rapid memory price increases. We raise our FY 26 EPS view by $0.08 to $2.99 and lower FY 27's by $0.15 to $2.83. Q2 results were impressive on paper, led by Personal Systems (71% of sales) growing by 10% in constant currency, up from Q1's 9% growth pace. Still, we think sales results are being boosted by unsustainable pull-in effects amid the rising price environment, and we expect HP to soon run out of lower-cost inventory that is allowing it to sustain its resilient margin performance (non-GAAP operating margin 7.5% in Q2, up 20 bps Y/Y). AI PCs should continue rising as a proportion of the PC mix (following a solid 44% contribution in Q2, +900 bps Q/Q), but we think this positive is more than offset by cost volatility that not only includes memory components but increasingly oil-based resins for the Printing business (59% of non-GAAP operating profit).