UBS downgraded PC and printer maker Hewlett-Packard (HPQ-US) on concerns about slowing consumer spending. HP shares fell 1.7% in premarket trading on Friday.

Berkshire Holdings (BRK.A-US) (BRK.B-US) disclosed on Thursday (7th) that it holds an 11.4% stake in HP.

UBS analyst John Roy downgraded HP to “neutral” from “buy” and set a $40 price target on the stock. He noted that a number of factors, including “increasing signs of weakness in low-end consumer personal computers (PCs),” could hurt the stock.

He noted in the report, “Since fiscal 2019, after two years of strong PC demand, aggressive cost reductions have driven HP’s operating margin growth of about 200 basis points, and average buybacks of about 200 basis points per quarter over the past six quarters. $1.5 billion in stock. We believe HP stock reflects strong execution as its P/E has expanded by about 33% since the end of 2021.”

Roy noted that the total addressable market for PCs has expanded, and PC unit sales could begin to decline as early as the October quarter as sales expand, supply chain headwinds and global macro concerns.

The analyst also noted that HP could slow share buybacks next year, “after closing the Plantronics (POLY-US) deal in late 2022.”

HP recently said it would buy Plantronics for $3.3 billion to expand its peripherals and videoconferencing businesses.

Morgan Stanley downgraded Hewlett-Packard and Dell Technologies (DELL-US) last month, along with their price targets, citing the company’s forecast to cut PC sales.