Barclays Downgrades HP Inc. (HPQ) to Underweight, Cuts Target to $18

HP Inc. (NYSE:HPQ) is one of the AI Stocks Analysts Are Watching Closely. On January 15, Barclays downgraded the stock to “Underweight” from Equal Weight, stating that it sees too many "secular challenges” across both HP’s PC and printing businesses." The firm has reduced its price target to $18.00 from $24.00.

"While we see the stock as inexpensive, we believe secular challenges across both PCs and Printing, combined with a lack of catalyst, will cause the stock to remain pressured in 2026. Additionally, we expect the current memory cycle to pressure HPQ's PC business (~30% of Personal Systems is Consumer) with further downside potential in the year."

The firm highlighted the current memory cycle as a factor anticipated to pressure HP’s PC business. They noted that an estimated 30% of the company’s Personal Systems segment is consumer-focused, which may face further downside potential this year.

Analysts on Wall Street have a consensus “Buy” rating on the stock. The average price target of $25 implies a 22.73% upside; however, the Street-high target of $30 implies an upside of 47.28%.

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.

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