JPMorgan raised its price target on HP Inc to $68 from $37, an 84% increase that signals strong conviction in the PC recovery and AI device cycle. The new target far exceeds the consensus and implies roughly 132% upside from the stock's recent close. The upgrade follows HP's earnings beat and accelerating AI PC adoption.
JPMorgan raised its price target on HP Inc to $68 from $37, an 84% increase that ranks among the largest analyst upgrades of the year. The new target implies roughly 132% upside from the stock's most recent close near $29.35.
The upgrade comes as HP benefits from accelerating AI PC adoption and the Windows 11 commercial refresh cycle, which drove Personal Systems revenue up 13% to $10.2 billion in its most recent quarter. HP reported total revenue of $14.4 billion, up 9% year over year, with non-GAAP earnings per share of $0.86. AI PCs now account for 44% of shipment mix, up from more than 35% previously, as corporate customers shift AI workloads toward local devices for lower latency and stronger data privacy.
The new $68 target far exceeds the average analyst price target of roughly $22 from just days earlier, when eight other firms raised their targets to a range of $18 to $26 following HP's earnings beat. Five of those eight analysts maintained negative ratings, reflecting lingering caution on margin pressure from rising memory and storage costs. JPMorgan's move represents a sharp departure from that consensus and signals conviction that the PC recovery cycle will prove durable.
HP guided for full-year non-GAAP EPS of $2.90 to $3.10 and free cash flow of $2.8 billion to $3 billion. At $68, the target implies a forward price-to-earnings multiple of roughly 22 to 23 times the midpoint of that range, a premium that reflects expectations for margin expansion as premium AI PCs and commercial upgrades improve product mix. The stock has gained about 8.5% in the prior session on a wave of analyst upgrades, and the JPMorgan call could pressure other bulge-bracket firms to reassess their ratings. Investors will watch HP's next earnings report for evidence that AI PC adoption is translating into sustained earnings growth.
This article is for informational purposes only and does not constitute investment advice.
