HP Inc.

Overview Key strengths Key risks Global business scale and strong brand recognition in printer and personal computing (PC) markets. Highly competitive and mature PC and printer markets facing a slower than expected recovery that may pressure pricing and EBITDA growth to support leverage improvements. Commitment to maintain conservative financial policies to support adjusted debt to EBITDA below 2x. Higher funded debt to support shareholder returns and acquisitions over the past couple of years. HP Inc. continues to face headwinds arising from lower enterprise spending, a slower recovery in China, excess inventory digestion, and increased price competition. We forecast HP's revenues will decline about 13%-14% in fiscal 2023 (ended in October) as a result. We expect global PC shipments to fall

...Global PC shipments are showing gradual signs of recovery. HP Inc. continues to face headwinds arising from lower enterprise spending, a slower recovery in China, excess inventory digestion, and increased price competition. We forecast HP's revenues will decline about 13%- 14% in fiscal 2023 (ended in October) as a result. We expect global PC shipments to fall near 15% in calendar 2023 but that it will rebound to about mid-single-digit percent growth in 2024 as enterprise spending gradually improves and from a PC refresh cycle related to Windows 10 end...

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