HP Enterprise (HPE) PT Raised to $24 at BofA Securities

BofA Securities analyst Wamsi Mohan raised the price target on HP Enterprise (NYSE: HPE) to $24.00 (from $23.00) while maintaining a Buy rating.

The analyst comments "Hewlett-Packard Enterprise (HPE) now expects at least $600M (up from $450M) in cost synergies over the next 3 years, with 1/3 of savings realized by end of year 1 and the rest spready evenly across the ensuing years. This benefit will be accretive to non-GAAP EPS in the first full year and accretive to FCF in year 2 and 3. Full, detailed guidance will be provided later during the company’s Analyst Day in October. HPE CEO Antonio Neri attributed the incremental $150M to largely two reasons. First, management is confident on incremental opportunities from synergy for its networking business. Second, HPE’s global supply chain should accrue COGS benefits as JNPR’s procurement process improves. Reiterate Buy as we see upside from Juniper synergies, structurally higher margins and upside from AI. Our PO moves to $24 (from $23) on 10x CY26E pro- forma EPS of $2.30."

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