Stifel Starts HP Enterprise (HPE) at Hold

Stifel initiates coverage on HP Enterprise (NYSE: HPE) with a Hold rating.

Analyst Aaron Rakers commented, "We initiate coverage on HP Enterprise (HPE) with a Hold rating. We establish F2015, F2016, and F2017 revenue/EPS estimates at $52.0B/$1.85, $49.8B/$1.87, and $49.6B/$1.94, respectively. HP guided its F2016 non-GAAP EPS at $1.85-$1.95/sh.; however, our initiated estimates include the reduction of ~$1.5 billion in networking revenue from the pending H3C majority stake ($2.3B) sale to Tsinghua; we estimate a ~$0.07-$0.09/sh. EPS reduction. Our DCF and sum-of-the-parts valuation methodologies (see pgs 26-28) support a $19-$20/sh. fair value on HPE; or 10x our C2017 EPS estimate, 10% FCF yield."

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 $ yesterday.

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