Citi upgraded HP Enterprise (HPE) to Buy from Neutral with a price target of $26, up from $23. The firm expects the company to benefit from improving demand in mainstream server and enterprise networking, expanding enterprise artificial intelligence opportunities and a narrowing valuation gap versus peers. HP Enterprise’s fiscal Q4 results beat estimates, and while AI orders “can be lumpy,” there is potential for stronger contribution from enterprise AI and sovereigns, “which bodes positively for revenue momentum and margins ahead,” the analyst tells investors in a research note. Citi says that when coupled with an improving demand outlook in core enterprise infrastructure spending and potential accretion from the Juniper (JNPR) acquisition, it is “increasingly more constructive” on the shares.
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Read More on HPE:
- HP Enterprise upgraded to Buy from Neutral at Citi
- HP Enterprise price target raised to $21 from $19 at Bernstein
- HP Enterprise price target raised to $27 from $24 at Barclays
- HP Enterprise price target raised to $25 from $22 at Stifel
- Hewlett Packard Enterprise Reports Strong Q4 Results
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
