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HPQ Stock Forecast: Why You Should Hold HP Inc Stock

The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

The COVID-19 pandemic is obviously a tailwind for most companies. HP Inc. is obviously go to trade sideways below $20 for a long time.
HP Inc. will report its Q2 2020 earnings later today. Our HPQ stock forecast most likely predicts a drop even with an EPS and revenue beat.
The -12.3% decline in Q1 was due to the COVID-19 global pandemic. This was because of shuttered Chinese factories during February-March period.
PC sales will still suffer year-over-year declines for most of this year. Many companies are retrenching employees instead of adopting work-from-home.
The COVID-19 pandemic is also a big headwind for HP’s printing business.

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The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Activist investor Carl Icahn bought a $1.19 billion stake in HP Inc. He also owns 10.6% stake in Xerox. Icahn is now orchestrating a Xerox takeover attempt of HPQ.
It might be profitable to buy HPQ on a bet that Xerox will increase its $22 cash + stock initial bid for each HPQ share.
Majority of HPQ stakeholders might agree to a deal if Xerox will increase its bid to $26.
The other scenario is HP, Inc. will instead offer an all-stock bid to acquire Xerox. HP Inc. has tried before before to buy Xerox.
Whatever happens, HP Inc. does not really need Xerox. It already owns the laser printer/copier business of Samsung.