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HP Inc. (NYSE:HPQ) shares have been downgraded to Hold from Buy at Loop Capital, with its price target kept at $29 per share.
An analyst said the stock has been one of the firm’s favorite Buy ratings in the last 24 months.
“We continue to believe HPQ is foundationally well positioned for the next 5 years, is improving that positioning with the acquisition of POLY, and that the company remains underappreciated structurally,” said the analyst.
However, while the firm likes the acquisition of Poly as an organic entre at scale into video conferencing while helping scale peripherals, they believe the integration is going to add costs and debt at the same time as macro impacts commercial spending.
In addition, Loop Capital also believe “the unique confluence of three events the company spoke to in its 8/30 earnings call is creating a 2 – 3 Q recalibration event period which investors will require before looking to again build new core positions.”
