Needham & Company Raises Price Target on Hewlett Packard Enterprise (HPE) Following 3Q

September 8, 2016 6:55 AM EDT
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Price: $23.85 +2.05%

Rating Summary:
    12 Buy, 9 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 10 | Down: 30 | New: 42
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Needham & Company reiterated a Buy rating on Hewlett Packard Enterprise (NYSE: HPE), and raised the price target to $24.00 (from $22.00), following the company's 3Q earnings report. HP reported revenues of $12.2B for the quarter. EPS was reported at $0.49, above the guided range for $0.42-0.46 and consensus' $0.44 estimate. The EPS beat was primarily driven by tax benefits contributing ~$0.04 to the beat.

Analyst Richard Kugele commented, "HPE continues to make lemonade out of lemons. The company has become adept at pivoting, splitting and divesting as necessary to extract shareholder value out of a business that plus or minus a point is basically not growing. That said, we believe the value extracted from the spin-merger of the software business with Micro Focus adds at least $2 in value for shareholders to our previous $22 price target (now $24) and on that basis warrants a reiteration of our Buy rating."

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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