HP Inc. shares traded lower Thursday, following downgrade from Goldman Sachs analysts who also lowered their price target on the stock.
Goldman Sachs analyst Rod Hall lowered his rating to "sell" from "neutral on the PC and printer maker’s shares. Hall slashed price target on the stock by $4 to $14 per share.
Hall feels that HP faces a "difficult transition" in its printers business, which the company announced last week. Softness in global consumer PC markets is another factor that he cited, alongwith his expectation that strength in business demand would cool off in the second half of next year.
Last week, HP revealed plans to retrench nearly a fifth of its workforce in a cost-cutting effort that it expects will result in around $1 billion savings over the next two years. It will eliminate between 7,000 and 9,000 jobs from its global workforce of 55,000, while taking a fourth quarter charge of around $100 million to compensate for the costs.