HP Inc. shares 'attractively valued' - EdwardJones

investing.com:

Analysts at EdwardJones upgraded shares of HP Inc. (NYSE:HPQ) to Buy from Hold in a note to clients on Tuesday, stating they believe the shares are attractively valued.

The firm says the personal computer (PC) market will return to growth in 2024 as PCs purchased during the pandemic are replaced.

«The PC market is mature, but HPQ has grown its market share over time and delivered revenue growth in most years. It has developed innovative products and higher-value PCs to grow faster than the market. PC demand has recently declined, however, following a demand surge during the pandemic. We feel that demand is starting to stabilize and will return to growth in 2024,» the firm wrote.

Analysts also see consumers and businesses potentially beginning to upgrade PCs because the Microsoft (NASDAQ:MSFT) Windows 10 operating system will no longer be supported after October 2025.

«Shares have been pressured due to demand weakness in the PC market,» analysts wrote. «PC demand was unusually strong during the pandemic due to purchases to accommodate work and education at home.»