Prolific Personal Systems Demand Helps HP Close Out a Strong Fiscal 2021; Raising FVE to $29

No-moat HP Inc closed off fiscal 2021 with impressive financial results, with top- and bottom-line numbers above our estimates as continued strength in the personal systems vertical buoyed the firm's top line. As in the quarters before, management highlighted the supply-demand imbalance currently present in the market, with HP's revenue being limited by supply chain constraints despite having willing buyers for their products. We are raising our fair value estimate to $29 per share from $27 as we expect growth to continue in fiscal 2022; however, we see shares as slightly overvalued as we remain concerned about the long-term demand for supply-constrained products after supply chain challenges normalize.