Warren Buffett sold HP stock early, but analysts recommend holding on due to growth potential.

From Nasdaq: 2024-06-07 09:36:21

Berkshire Hathaway surprised markets with a stake in HP Inc. Warren Buffett typically avoids tech companies but saw HP as a consumer company. Despite once being the biggest shareholder of HP, Berkshire exited in Q1 2024. HP’s stock soared after beating earnings in Q2, with a focus on AI PCs in their portfolio.

HP saw a rise in demand for AI PCs during their Q2 earnings call. While not traditionally an AI stock, HP’s sales of AI PCs are expected to grow. Industry analysts expect global PC shipments to increase, with AI capabilities driving higher average selling prices. David Einhorn took a stake in HP in Q1.

Several brokerages raised HP target prices post Q2 earnings. Analysts rate HP as a “Moderate Buy,” with varied target prices. With a compelling risk-reward profile, HP trades ahead of its mean target price. The company expects healthy free cash flows and dividend yields, making it an attractive investment opportunity. Buffet’s exit may not reflect the stock’s true potential.



Read more at Nasdaq: Warren Buffett Sold This Stock Quite Early, But You Should Probably Hold On