Analyst Note
| William Kerwin |We maintain our $30 fair value estimate for no-moat HP shares after the firm reported fiscal second-quarter results at the high end of its guidance range. Management narrowed its fiscal 2023 non-GAAP EPS outlook range, as the firm gains greater visibility into the second half of the year. While macroeconomic headwinds remain steadfast, the firm believes it is at a turning point and expects reduced channel inventory, favorable seasonality, and cost discipline to bolster second-half results. While cyclical dynamics affecting HP are transitory in nature, we do not view HP’s commodity-like offerings as moaty for the long term. We see shares as fairly valued.