Falling demand for computers and electronics made Morgan Stanley analysts even more bearish on 3 PC stocks.
On Friday (4th) Morgan Stanley analyst Erik Woodring reiterated the underweight / sell rating on these 3 stocks: HP (HPQ-USA) 、 Cricut (CRCT-USA) and Logitech (LOGI-US), citing the pessimistic results of the investment bank’s recent consumer survey.
He wrote: “Although our AlphaWise Consumer Pulse survey, conducted in late October, showed that sentiment has largely stabilized, consumer hardware / PC data is deteriorating. Since the end of the quarter, caution has intensified, the which could put increasing downward pressure on consumer hardware valuations.
As the situation of the Chinese new crown outbreak is expected to change substantially, the US stock market rose on Friday and tech stocks generally rose: HP and Logitech both closed more than 6%, but Cricut fell 4.12%. .
Woodring reiterated a price target of $ 24 for HP, $ 5 for Cricut, and $ 39 for Logitech.
None of the three companies immediately responded to requests for comment on the Morgan Stanley report. HP makes PCs, while Logitech and Cricut make PC peripherals.
The analyst said the survey showed that this year’s shopping vacation will reduce purchases of consumer electronics and personal computers. The number of respondents is three times that of last year, and more than 70% of respondents have stated that it will wait for special discounts before shopping. .
“Not only that, but consumers’ net willingness to spend on hardware over the next six months has hit a new low in the survey.”
Throughout 2022, PC sales prospects have deteriorated. According to research firm IDC, global PC shipments fell by 15% in the second quarter after falling by 5% in the first quarter of this year (through March). PC shipments also fell 15% in the third quarter, IDC said on Oct.10.
PC processing chip manufacturer Intel (INTC-USA) and AMD (AMD-USA) in recent weeks has posted quarterly earnings for the September quarter, all revenue forecast for the quarter ending December well below Wall Street expectations with no surprise: PC demand is weak.
