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Why HP (HPQ) Stock Is Trading Up Today

HPQ Cover Image

What Happened?

Shares of personal computing and printing company HP (NYSE: HPQ) jumped 2.6% in the morning session after HSBC upgraded the stock to Buy from Hold and raised its price target, citing a positive outlook for the company's PC and printer sales. 

The bank increased its price target on HP's stock to $30 from $28.10. Analysts pointed to several factors supporting the upgrade, including the expected increase in PC demand as support for Windows 10 ends, which would prompt users to buy new computers. They projected PC volume growth of 5.1% in fiscal 2025. The forecast for printer sales also improved. Additionally, concerns about potential U.S.-China tariffs were seen as minimal because HP had reduced its reliance on imports from China.

After the initial pop the shares cooled down to $28.23, up 3.3% from previous close.

Is now the time to buy HP? Access our full analysis report here.

What Is The Market Telling Us

HP’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 23 hours ago when the stock gained 5.9% on the news that the company announced it had commenced operations at a new manufacturing facility and an AI Research & Development Center in Saudi Arabia. The new factory, located in Riyadh, began by producing the HP EliteDesk AI PC and was set to expand its production line. This move was designed to bring manufacturing closer to customers in the region, aiming to improve delivery times and supply-chain strength.

HP is down 13.1% since the beginning of the year, and at $28.23 per share, it is trading 28.2% below its 52-week high of $39.30 from November 2024. Investors who bought $1,000 worth of HP’s shares 5 years ago would now be looking at an investment worth $1,448.

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