HP Gets Rating Upgrade on Valuation and Business Momentum
HSBC has upgraded HP’s rating, citing improved valuation and stronger business momentum. The analyst team highlighted that the printer volume outlook is less negative than initially feared. They raised their printer unit sales forecasts by 1% to 2%, noting that other printer manufacturers have followed HP’s lead in increasing printer prices.
In the third quarter of fiscal 2025, HP’s printer hardware volumes declined 9% year-over-year, primarily because HP was the first among printer OEMs to raise prices. However, now that competitors have also increased their prices, HSBC expects better volume dynamics for HP going forward. This pricing strategy and the resulting stabilization in printer sales contributed to the rating upgrade, reflecting renewed confidence in HP’s growth prospects.
Click here to find out more!
