Analyst Jim Suva also lowered his price target on the Palo Alto, California-based company to $21 a share from $25 due to what he described as "mixed data points."
Suva said in a note to investors that positive personal computer data points offset mixed print data points and offered limited positive catalysts. He said he expects stronger near-term PC results due to demand to pull through ahead of second-quarter tariffs combined with easing chip component shortages.
However, he noted that a large HP partner reduced laser supply expectations drastically. Suva said he sees macro risks pressuring commercial purchases in PCs and print moving into 2020 and he believes upsides to estimates and multiples are limited.
HP Inc. is scheduled to release its third-quarter earnings report on Thursday.
In May, HP Inc. posted stronger-than-expected second-quarter earnings and increased its full-year profit guidance due to a steadying printing supplies division.