HP: We Continue to Like Strong Shareholder Returns After Unsurprising Analyst Day

We maintain our $30 fair value estimate for shares of no-moat HP after its 2023 analyst day reiterated existing strategy and its long-term financial model largely fit our expectations. HP’s presentations centered around a focus on profitability across flat PC and printing end markets. The firm also highlighted its growing mix of growth-adjacent markets like peripherals. We continue to like HP’s focus on profitability, cash flow, and shareholder returns, and we think investors do too, with shares up 2% afterhours following the analyst day. We see shares as modestly undervalued, with very attractive shareholder returns.