Bank of America disagrees with Warren Buffett on HP Inc

October 03, 2023 08:08 AM PDT | By Invezz

Bank of America disagrees with Warren Buffett on HP Inc — Image source: Invezz

Berkshire still owns 10.2% of HP

Trimming that stake in recent days generated about $381 million for Berkshire Hathaway Inc, as per a regulator filing on Tuesday.

The multinational still holds just over 100 million shares or 10.2% of HP Inc. But it’s no longer the larger shareholder of the computer hardware company – that title sits with Vanguard now.

Note that the “Oracle of Omaha” will not be required to disclose his transactions related to HP stock if he continues to pull out of it in the coming weeks to the point that he no longer owns at least 10% of the New York listed firm.

The announcement arrives less than a month after Invezz reported the legendary investor to have sold $158 million worth of HPQ.

Bank of America sees 30% upside in HP

Also on Tuesday, though, a Bank of America analyst – Wamsi Mohan double upgraded HP stock to “buy”. His $33 price target suggests a 30% upside from here.

Mohan told his clients in a research note today that the PC maker is trading at an attractive valuation following the recent underperformance. He expects the headwinds to be short-lived and is convinced that its long-term fundamentals remain positive.

Positive drivers include an improving PC market backdrop, improved profitability from cost actions and stable to higher free cash flow over the next several years.

Mohan is bullish on HP stock even though the company came in shy of Street estimates in its latest reported quarter.

The post Bank of America disagrees with Warren Buffett on HP Inc appeared first on Invezz.

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