European Investor
24 Aug 2026, 17:35
HP Falls 4.1% as Morgan Stanley Cuts Price Target to $17
HP Inc. (NYSE: HPQ) shares fell about 4.1% after Morgan Stanley lowered its price target on the PC and printing technology company, reinforcing a bearish view on the stock.
Morgan Stanley analyst Erik Woodring maintained an Underweight rating on HP while reducing the price target to $17 from $19. The new target represents roughly 40% downside from the current stock price of about $28.50.
Morgan Stanley maintains bearish stance
The decision to retain an Underweight rating while cutting the target further suggests Morgan Stanley sees continued downside risk for HP. From a sector perspective, HP remains heavily exposed to mature PC and printing markets, where growth tends to be more cyclical and slower than in higher-growth areas of the technology sector. That positioning can make the stock particularly sensitive to expectations around PC demand, corporate IT spending, hardware pricing and margins.
HP also competes in a technology market increasingly dominated by investor enthusiasm for AI infrastructure, semiconductors, cloud computing and data-center spending. While AI-enabled PCs offer a potential upgrade cycle for traditional hardware manufacturers, the near-term financial impact remains an important consideration for investors.
The 4.1% decline indicates that the market is reacting negatively to Morgan Stanley's lower valuation assessment. With the firm maintaining its Underweight recommendation and cutting its target from $19 to $17, the analyst action adds further pressure to sentiment around HP shares.
HP Inc. (NYSE: HPQ) shares fell about 4.1% after Morgan Stanley lowered its price target on the PC and printing technology company, reinforcing a bearish view on the stock.
Morgan Stanley analyst Erik Woodring maintained an Underweight rating on HP while reducing the price target to $17 from $19. The new target represents roughly 40% downside from the current stock price of about $28.50.
Morgan Stanley maintains bearish stance
The decision to retain an Underweight rating while cutting the target further suggests Morgan Stanley sees continued downside risk for HP. From a sector perspective, HP remains heavily exposed to mature PC and printing markets, where growth tends to be more cyclical and slower than in higher-growth areas of the technology sector. That positioning can make the stock particularly sensitive to expectations around PC demand, corporate IT spending, hardware pricing and margins.
HP also competes in a technology market increasingly dominated by investor enthusiasm for AI infrastructure, semiconductors, cloud computing and data-center spending. While AI-enabled PCs offer a potential upgrade cycle for traditional hardware manufacturers, the near-term financial impact remains an important consideration for investors.
The 4.1% decline indicates that the market is reacting negatively to Morgan Stanley's lower valuation assessment. With the firm maintaining its Underweight recommendation and cutting its target from $19 to $17, the analyst action adds further pressure to sentiment around HP shares.
