BofA Securities analyst Wamsi Mohan upgraded HP Inc. (NYSE: HPQ) from Underperform to Buy, raising the price target to $33 from $25 based on an improved Free Cash Flow (FCF) outlook and the resumption of capital returns.
Mohan expects the company to achieve a bottom in FCF in FY23, driving subsequent growth from improving PC outlook and lowering restructuring costs.
Drivers for FCF improvement also include a push to a higher upfront profitability model in Print.
The analyst thinks growth in overall operating profit dollars is possible, driven by higher NPV print projects (Large tank, Instant Ink, Graphics, 3D Print) and tight cost controls.
In addition, ...