On January 13, Goldman Sachs analyst Katherine Murphy began covering HP Inc. stock, assigning it a Sell rating and setting a price target of $21.00. The firm's analysts pointed to long-term pressures on PC margins for HPQ, anticipating that estimates for 2026 and 2027 could fall short despite strong returns to shareholders.
In a research note, Murphy informed investors that after a fiscal year 2025 that outperformed expectations and considering potential demand effects from increased pricing, consensus forecasts for Personal Systems growth in fiscal year 2026 might be overly optimistic.
The firm still views HPQ favorably for its leading shareholder returns in the sector. However, it believes HPQ faces the greatest exposure to enduring challenges affecting PC margins and demand.
"While we continue to like HPQ’s sector-leading shareholder returns profile, targeting 100% of free cash flow returned to shareholders, and believe the company will be able to defend its strong market share positions in PCs and Print, HPQ is the most exposed name in our coverage to secular pressures on PC margins and demand, and as such, we see downside to consensus sales and earnings estimates in fiscal 2026 and 2027," the analyst stated.