Goldman Sachs Cites Secular PC Margin Pressure in Sell Call on HP Inc. (HPQ)

HP Inc. (NYSE:HPQ) is one of the Hot AI Stocks to Keep on Your Radar. On January 13, Goldman Sachs analyst Katherine Murphy assumed coverage on the stock with a Sell rating and a price target of $21.00. Firm analysts see secular PC margin pressures on HPQ, expecting downside to 2026/2027 estimates despite robust shareholder returns.

The analyst told investors in a research note how following a stronger-than-expected FY25 and potential demand impacts from higher pricing, it seems that consensus expectations for Personal Systems growth in FY26 may be too high.

The firm continues to like HPQ’s sector-leading shareholder returns profile, believing HPQ is the most exposed to secular pressures on PC margins and demand.

“While we continue to like HPQ’s sector-leading shareholder returns profile (target 100% of FCF returned to shareholders) and believe the company will be able to defend its strong market share positions in PCs and Print, HPQ is the most exposed name in our coverage to secular pressures on PC margins and demand, and as such, we see downside to consensus sales and earnings estimates in F2026/27.”

HP Inc. (NYSE:HPQ) is a technology company that specializes in personal computing and printing solutions.

While we acknowledge the potential of HPQ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 11 AI Stocks on the Market’s Radar and 10 Trending AI Stocks on Wall Street

Disclosure: None.