HP falls after Morgan Stanley downgrades to 'underweight'

Shares of PC maker HP Inc down 3.8% at $23.60 premarket

Morgan Stanley downgrades stock to "underweight" from "equalweight", PT at $24

Brokerage says memory market is going through unprecedented cycle, with spot prices for NAND and DRAM, critical components in hardware devices, soaring by 50% and 300%, respectively, over the past six months

Says HPQ is one of the 'most vulnerable' among U.S. PC makers, as it relies more on DRAM, type of computer memory; recent channel checks show weaker demand and its profit margins are lower than competitors

Adds that HP print continues to face pressure, combined with rising memory costs, puts incremental pressure on margins

2 of 18 brokerages rate stock "buy" or higher, 14 "hold", while 2 "sell"; median PT of $28 - data compiled by LSEG

Up to its last close, stock down ~25% YTD