Hewlett Packard Enterprise (HPE): Spinoffs Remain On Track, Shares Undervalued - Oppenheimer

October 19, 2016 12:44 PM EDT
Get Alerts HPE Hot Sheet
Price: $24.64 -0.16%

Rating Summary:
    12 Buy, 9 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 21 | Down: 18 | New: 19
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Oppenheimer analyst, Ittai Kidron, reiterated his Outperform rating on shares of HP Enterprise (NYSE: HPE) after yesterday's investor event in San Francisco. The increased clarity on the financial profile of residual HPE increases his conviction in the investment validity of the company.

Key takeaways:
1) the Enterprise Services (ES) and Software spin-offs are on track to close in 2017 and are expected to unlock significant value
2) Enterprise Group (EG) offers both growth and margin expansion opportunities
3) the FCF characteristics of remain-co are expected to be attractive and suggest residual HPE valuation is depressed
4) the financial outlook for remainder of the year is unchanged

No change to the price target of $25.

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 $21.47 yesterday.



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