UPDATE: Morgan Stanley Downgrades HP Enterprise (HPE) to Underweight
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Morgan Stanley analyst Katy Huberty downgraded HP Enterprise (NYSE: HPE) from Equalweight to Underweight with a price target of $15.00 (from $17.00).
The analyst comments "~60% of business is still exposed to servers / storage, with less backlog and more challenging setups in near term. HPE is an inexpensive asset with a lot of cash flexibility between their Oracle settlement (now on balance sheet) and H3C stake. We also like elements of their business like Aruba and the HPC segment. However, with larger strategic activity unlikely in the near term given quick move in prices (and still expensive private markets), and headwinds to 60% of the business from weakening hardware pipelines, we are more cautious of HPE in the near term. While we don't see a tremendous amount of downside to valuation, we do think that the name will likely underperform in the near term."
Shares of HP Enterprise closed at $15.81 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades, Hot Comments, Hot Downgrades
Related EntitiesMorgan Stanley, Katy Huberty
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