BMO Capital Raises Price Target on Hewlett Packard Enterprise (HPE) Following Mixed 3Q Report

September 8, 2016 9:38 AM EDT
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Price: $21.63 -1.14%

Rating Summary:
    11 Buy, 10 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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BMO Capital reiterated an Outperform rating on Hewlett Packard Enterprise (NYSE: HPE), and raised the price target to $26.00 (from $24.00), following the company's 3Q earnings report. HPE reported mixed results, with revenue of $12.2B coming up short of the consensus estimate of $12.6B. EPS of $0.49 beat $0.45 forecasts.

Analyst Tim Long commented, "Results were mixed, as a revenue shortfall was offset by a strong margin performance. Some of the revenue weakness was deliberate as HPE repositions the company for profitable growth, a positive move in our view. Separately, yet another divestiture was announced as the Software business is being spun off. The deal should further unlock value and positions the company as a pure play enterprise hardware vendor. That will offer an improved growth and margin profile, but likely also marks the last significant divestiture; execution will now be key."

For an analyst ratings summary and ratings history on HP Enterprise click here. For more ratings news on HP Enterprise click here.

Shares of HP Enterprise closed at $22.09 yesterday.

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