(CercleFinance.com) – Credit Suisse on Friday reduced its opinion on HP Inc. from ‘outperformance’ to ‘neutral’ in view of an upcoming economic slowdown.
In a research note, the financial intermediary explains that it expects the PC and printer manufacturer’s turnover and profit margins to suffer from the deterioration in consumer sentiment, which generates nearly 50% of its computer sales.
Credit Suisse also says it expects pressure on its selling prices as supply and demand rebalance after months of equipment shortages.
The analyst also fears a slowdown in business spending, which he says will favor their investments in the ‘cloud’ or cybersecurity at the expense of computer equipment.
Finally, economic uncertainty should penalize purchases of 3D printers and professional printers, he argues, while keeping his target price of 33 dollars unchanged.
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