Barclays has downgraded HP Inc. (HPQ) to a sell rating, citing secular headwinds in PCs and printing and a lack of catalysts. The bank trimmed its price target from $24 to $18, applying a 6x earnings multiple versus the previous 8x, while keeping FY27 earnings unchanged.

Analyst Tim Long warned that the current memory cycle is unusually severe, potentially squeezing margins across HP’s memory‑dependent units. He noted that the Windows 11 refresh is largely complete in the U.S., leaving only a modest 60% capture and signaling a flattening PC refresh cycle for the near term ahead.

Barclays projects further margin erosion on both gross and operating lines, driven by supply constraints and competitive pricing. The note also flags potential supply and pricing issues in the second half of 2026, suggesting that demand could degrade even after a short‑term pull‑in from inventory‑locked customers in the near future.

Investors should monitor HP’s quarterly earnings for signs of memory‑related cost pressures and watch how the company navigates the post‑refresh PC market, as these factors will shape the stock’s trajectory.