Loop Capital believes investors should take a pause on HP Inc . as the company maneuvers a reset. Analyst Ananda Baruah downgraded shares of the laptop maker to a hold from a buy, citing potentially softening commercial PC demand going forward and the need for investors to assess the company’s pending transformation plan. “We continue to believe HPQ is foundationally well positioned for the next five ears, is improving that positioning with the acquisition of POLY, and that the company remains underappreciated structurally,” Baruah wrote. “That being said, we also believe the unique confluence of three events the company spoke to in its 8/30 earnings call is creating a 2–3 Q recalibration event period which investors will require before looking to again build new core positions.” HP said it plans to reveal a “transformation program” in the near future which likely includes several cost-saving and strategic initiatives, Baruah wrote. Those developments could enable HP to return to a valuation range of 10-13 times earnings, Baruah wrote. But he believes investors will “take a wait and see approach” given the current macroeconomic outlook. HP’s shares have slumped nearly 24% this year. Loop’s $29 price target suggests the stock will remain rangebound from Wednesday’s close, selling for roughly 8x fiscal 2023 earnings. — CNBC’s Michael Bloom contributed reporting