HP Inc. (HPQ) shares were trading slightly lower on Friday. Bank of America Securities downgraded the stock to Neutral from Buy. Analyst Wamsi Mohan thinks that potential gains in the PC business will be offset by lower margins in the printing business.

HP (HPQ) was in the spotlight on Friday as Bank of America downgraded the tech company amid worries that margins for its printer division. Read for more.

Bank of America has downgraded HP Inc. (NYSE: HPQ) from a Buy to a Neutral rating due to concerns over declining margins in the company’s printing division. Analyst Wamsi Mohan cited that any growth in earnings per share (EPS) is expected to come primarily from share buybacks—estimated at a 4% reduction in share count—rather than operational

As previously reported, BofA analyst Wamsi Mohan downgraded HP Inc. to Neutral from Buy with an unchanged price target of $37. The rating change is predicated on the view that any EPS growth will come purely from share buybacks as potential upside from PCs,