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HP stock whipsaws between analyst upgrades and Buffett's stake cut

Published 12/11/2023, 05:05 PM
Updated 12/12/2023, 05:26 AM
© Reuters.
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(Updated - December 12, 2023 5:23 AM EST)

Warren Buffett's Berkshire Hathaway (NYSE:BRKa) more than halved its stake in HP (NYSE:HPQ) Inc, as the conglomerate continues to trim its holdings in the PC and printer maker, according to a regulatory filing Monday.

Following the latest reduction for the reporting period ending Nov. 30, the company now holds a 5.2% stake, about 51.5 million shares in HP from nearly 100M previously.

The conglomerate has been trimming its stake in the PC and printer maker after amassing a double digit stake early last year.

On a more positive note, Morgan Stanley analysts raised their recommendation on HPQ stock to Overweight as hardware markets "are in the bottoming phase."

The price target is lifted by $4 to $35 per share.

"We are upgrading HPQ as we see it as an underappreciated play on the PC market recovery that should also benefit from re-accelerating capital returns and operational efficiency," analysts said.

The Morgan Stanley upgrade comes after Evercore ISI made a similar move yesterday.

HPQ shares are down 0.4% in pre-market Tuesday.


Additional reporting by Senad Karaahmetovic

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