HP stock falls after Goldman Sachs turns bearish
Goldman Sachs analyst Rod Hall downgraded shares of HP Inc. (HPQ) to sell from neutral on Thursday, writing that he expects a "substantially tougher environment" ahead next year as the company sees PC tailwinds reverse and tries to change up its printing strategy (http://www.marketwatch.com/story/with-yet-another-restructuring-hp-wakes-up-to-the-realities-of-its-struggling-cash-cow-2019-10-03) to combat a rise in counterfeit supplies. Shares are off 2.4% in premarket trading Thursday. "While consumer PCs have been weak, this has been masked by strength in commercial PCs driven in part by the Windows 10 migration cycle which we expect to fade in 2020, particularly in [the second half]," Hall wrote. "Further, we see significant risk to printing profits as the supplies business continues to deteriorate." He lowered his price target to $14 from $18. The stock has lost 20% over the past three months, while the S&P 500 has risen 2.5%. Hall also turned bearish on
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 10, 2019 09:06 ET (13:06 GMT)
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