Expectations are high for HP’s (NYSE:HPQ) securities analyst meeting being held on October 10.
Evercore ISI said the biggest focus will be a correction over commodity price stabilization given that long-term margins for its PCs and print segments have held up well.
The firm will also be looking for 2024 guidance and clarity around PC recovery expectations and beyond, as well as for print margins and the mix between office and home demand. Subscription metrics and progress surrounding services progress and strategy will similarly be on the line.
Analysts led by Amit Daryanani, who have a price target of $33 on the stock, noted Berkshire Hathaway trimmed its position in HP (HPQ) in recent weeks.
Five key topics that investors will focus on include:
- Guidance for 2024. In addition, the company’s set to reiterate its capital allocation mandate of returning more than 100% of free cash flow through dividends and buybacks.
- Subscriptions. HP (HPQ) should outline its subscription revenue ramp and targets.
- PC Recovery. Expect an update to market size and growth expectations with some color around how management is expecting the shipments and shape of recovery to look next year.
- Print Roadmap. Expect an update to market size and growth estimates with deeper dive into the respective sub-markets like home, office, graphics and media.
- High Growth Markets. Expect HP (HPQ) to spend some time outlining the revenue opportunity for its five growth vectors including gaming, peripherals, instant ink, industrial graphics & 3D and workforce solutions.
Evercore ISI maintained its In Line rating on the stock. The stock has three Strong Buy ratings from Wall Street analysts, two Buys, 10 Holds, one Sell and one Strong Sell, according to data compiled by Seeking Alpha.
Shares are down 3% year-to-date.
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