10 AI Stocks on Wall Street’s Radar

8. HP Inc. (NYSE:HPQ)

Number of Hedge Fund Holders: 47

On May 29, Morgan Stanley lowered the firm’s price target on HP Inc. (NYSE:HPQ) to $26 from $29 and kept an “Equal Weight” rating on the shares. HP Inc. is a technology company that specializes in personal computing and printing solutions.

Discussing the FY25 guide-down, the firm noted that it is the impact of tariffs, execution, and management conservatism, leaving shares in “the penalty box” regardless of a “cheap” valuation. The firm also said that cost-cutting measures did not entirely mitigate these issues.

As of now, HP’s growth areas are too small and lack transparency, and aren’t in a position to meaningfully influence the company’s performance. Analysts have also forecast that cost reductions are only partially likely to protect profitability, resulting in an EPS for the fiscal year 2026 that is anticipated to be roughly on par with fiscal year 2024.

Capital returns over the next few quarters may be restricted due to HP’s increased leverage. The analyst further added that a lack of a positive company-specific catalyst keeps the firm on the sidelines.