HP Inc. shares took a hit on Monday, following a rating downgrade by Bernstein Research.
Bernstein reduced its rating on the tech company's stock to market perform from outperform, citing structural headwinds to HP's printing unit amidst a shift to digital.
In its third quarter, HP experienced a -5% decline in revenue from its printing unit. However, outgoing CEO Dion Weisler told investors on an earnings call last month HP "outperformed the market in an increasingly challenging environment,".
HP's PC segment saw a +6% revenue growth in the latest quarter ,and a +51% surge its profit margin . But Bernstein analysts seemed apprehensive as to whether HP can sustain its strong performance in its PC unit, given the threats posed by the ongoing U.S.-China tariff war.
HP stock price fell -1.83%, following the downgrade by Bernstein.