Citigroup Downgrades HP Outlook to Neutral Amid Revenue Growth

In a recent report, Citigroup has downgraded HP's outlook from 'Buy' to 'Neutral' despite a projected increase in annual revenue. Analyst price forecasts suggest minimal upside, while fund sentiment shows increased institutional interest.

Date: 03-10-2024

AI Rating: 5

The report highlights that Citigroup has downgraded HP's outlook to Neutral from Buy, which could signal a negative sentiment among investors. Such downgrades often lead to a decrease in stock prices as they reflect concerns about the company's performance or market environment.

Despite the downgrade, the projected annual revenue for HP is expected to be 57,169MM, which indicates a commendable increase of 7.22% compared to previous figures. Often, revenue growth can positively influence stock prices, suggesting investors should monitor HP closely for developments that confirm this trend.

The projected annual non-GAAP EPS stands at 3.64, providing potential insight into profitability. Earnings per share (EPS) is a crucial metric for investors as it illustrates a company's profitability on a per-share basis. Although EPS figures are often closely watched, the downgrade may overshadow this positive indicator.

Analyzing the fund sentiment reveals that there are currently 2,016 funds5.66% increase in ownership during the last quarter. This interest from institutional investors can lend some stability to the stock as they tend to hold longer-term perspectives.

Major stakeholders like Dodge & Cox have slightly reduced their shareholdings by 0.72%, while others like Bank of America have increased their stakes by 5.79%, indicating mixed sentiments among institutional investors. The overall trend in institutional ownership appears stable, suggesting that while there may be short-term concerns, long-term confidence in HP remains.

With the average price target indicating only a 0.54% upside from the latest closing price, investor expectations may be limited in the near term. The range of price forecasts also suggests some variability, with a high forecast of 43.17 GBX likely being more optimistic.

Stocks: HP