UPDATE: JPMorgan Downgrades HP Enterprise (HPE) to Underweight
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JPMorgan analyst Paul Coster downgraded HP Enterprise (NYSE: HPE) from Neutral to Underweight with a price target of $16.00.
The analyst comments "We were encouraged by the initial EPS and EBIT profit outlook for FY20, issued at the 10/23 analyst event, but we were less impressed with the flattish 2020 FCF growth caused by one-time integration expense, and limited top-line visibility. Looking into 2020 we see few catalysts, softer 1H20 term data center hardware demand, and materially lower share buybacks relative to the past 2 years. In addition, HPE seems to be making a big strategic commitment to everything as-a-service, which introduces risk and complexity into the sales process and organization, and into the business model itself. At minimum this transition could take a couple of years and interpretation of financial results could get harder as a result."
Shares of HP Enterprise closed at $16.41 yesterday.
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