The hardware industry is at risk of losing market share to other technology sub-industries due to greater macro uncertainty, “leaving us incrementally more cautious on the group in 2022,” according to Morgan Stanley.
The HP Analyst
Erik Woodring downgraded the rating for HP Inc from Equal-Weight to Underweight, while reducing the price target from $34 to $31.The HP Thesis
Rising channel and finished goods inventory, cautious commentary from ODMs (original design manufacturers), and easing consumer demand raises more concerns around the PC (personal computer market,” Woodring said in the downgrade note.“Alongside the more cautious 1Q22 CIO survey, we are revising our CY22 PC shipment forecast to -6 percent Y/Y vs. -4 percent previously,” the analyst wrote.
“We are also more guarded on the potential for rising PC ASPs to reverse in 2H22, pressuring PC operating margins,” he added.
By Priya Nigam
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