HP Inc. (HPQ) Misses the Mark: No Positive Catalysts to Pull It Off the Sidelines

We recently published a list of 10 AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where HP Inc. (NYSE:HPQ) stands against other AI stocks on Wall Street’s radar.

On May 29, Morgan Stanley analyst Sanjit Singh raised the price target on C3.ai, Inc. (NYSE:AI) to $22.00 from $20 while keeping an “Underweight” rating.  C3.ai, Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company involved in building and operating enterprise-scale AI applications and accelerating digital transformation.

On May 29, Morgan Stanley lowered the firm’s price target on HP Inc. (NYSE:HPQ) to $26 from $29 and kept an “Equal Weight” rating on the shares. HP Inc. is a technology company that specializes in personal computing and printing solutions.

Discussing the FY25 guide-down, the firm noted that it is the impact of tariffs, execution, and management conservatism, leaving shares in “the penalty box” regardless of a “cheap” valuation. The firm also said that cost-cutting measures did not entirely mitigate these issues.

As of now, HP’s growth areas are too small and lack transparency, and aren’t in a position to meaningfully influence the company’s performance. Analysts have also forecast that cost reductions are only partially likely to protect profitability, resulting in an EPS for the fiscal year 2026 that is anticipated to be roughly on par with fiscal year 2024.

Capital returns over the next few quarters may be restricted due to HP’s increased leverage. The analyst further added that a lack of a positive company-specific catalyst keeps the firm on the sidelines.

Overall, HPQ ranks 8th on our list of AI stocks on Wall Street’s radar. While we acknowledge the potential of HPQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HPQ and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.