Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Hewlett-Packard Enterprise raised to Buy at BofA on several catalysts; shares up

Source Investing

Investing.com -- Analysts at Bank of America (NYSE:BAC) (BofA) hiked their rating on Hewlett Packard Enterprise Co (NYSE:HPE) shares to Buy from Neutral and lifted the price target on the stock to $24 from $21.

The company’s shares rose roughly 4% in Tuesday’s market pre-open.

The upgrade reflects BofA's positive outlook on the company's potential for significant cost cuts, a cyclical recovery in its core markets, and revenue and cost synergies from its upcoming acquisition of Juniper Networks Inc (NYSE:JNPR)s.

HPE's acquisition of Juniper Networks for approximately $14 billion in cash is expected to close soon, with CEO Neri at the helm. The move is intended to reduce HPE's dependency on compute solutions and enhance its focus on the higher-margin networking business.

Despite a challenging networking market, BofA anticipates that cost synergies from the deal will exceed $450 million, with 70% expected to be realized by the end of 2026, contributing to a significant increase in consensus earnings per share (EPS).

“We expect additional cost takeouts at core HPE of at least 100bps incrementally, which is also likely conservative,” BofA analysts said in a Tuesday note.

In its Q3 financial report, HPE showcased AI server revenues of $1.3 billion and a substantial backlog of $3.4 billion. The company also reported an increase in server operating margins quarter over quarter, highlighting a focus on profitability.

BofA expects HPE to benefit from its partnership with NVIDIA (NASDAQ:NVDA), leveraging AI computing and capitalizing on Juniper’s Mist platform in the networking market.

“With decades of expertise in liquid cooling (CRAY systems) and increased adoption of supercomputing, HPE will be able to command a key position in AI adoption at Enterprise and Sovereign,” analysts continued.

HPE's stock is currently trading at approximately 8x the estimated 2025 consensus EPS, which is at the lower end of its historical range of 6 to 13x. While acknowledging the risks of execution challenges and increased leverage, particularly in a recession scenario, BofA's price objective of $24 is based on a 10 times multiple of the projected 2026 pro-forma EPS of $2.40.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Bitcoin falls below $75,000 as the CLARITY Act fails in the Senate — what the vote means for crypto The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Author Suzie

Sep 16, Wed

The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks in The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Author Irene Q.

Sep 17, Thu

The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Gold ends three-week slide at the $4,400 line — eight straight days of ETF inflows vs a 5% 10-year and a 100 dollar Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.

Author Suzie

Sep 20, Sun

Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.

Gold Price Forecast: Gold Eyes Key $4,400 Resistance as Falling Oil Prices Ease Inflation Pressure As of the Asian session on September 21, gold prices (XAUUSD) maintained high-level consolidation intraday today following a strong rebound last week, with the latest price trading around

Author TradingKey

Sep 21, Mon

As of the Asian session on September 21, gold prices (XAUUSD) maintained high-level consolidation intraday today following a strong rebound last week, with the latest price trading around

Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonight The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Author Suzie

17 hours ago

The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Popular Symbols