FBN Securities Starts HP Enterprise (HPE) at Outperform

FBN Securities initiated coverage on HP Enterprise (NYSE: HPE) with a Outperform rating and a price target of $16. Analyst Shebly Seyrafi thinks the company is well positioned.

"The company plays in a $1 trillion+ TAM (growing at a 3-year CAGR of over 4%), it is well positioned in its various markets (e.g. HPQ places well in Gartner’s Magic Quadrant for servers, disk arrays, wired/wireless networks, and integrated systems), the (recently problematic) Enterprise Services segment (where the majority of the recently announced 25-30K layoffs will occur) should stabilize next year as this segment’s operating margin is expected to expand from 5.3% in F2015 to 6-7% in F2016 and to 7-9% by F2018, and the company has many recurring revenue streams (software, enterprise services, technology services within Enterprise Group, and HP Financial Services)," said Seyrafi.

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 $13.69 yesterday.

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