HP rises after Morgan Stanley upgrades to "overweight"

Juniper Networks

05/12/2024 13:27

** Shares of AI server maker Hewlett Packard  HPE.N  rise
3.63% to $22.55 premarket, after Morgan Stanley upgrades the co
to "overweight" from "equal-weight" and raises TP to $28 from
$23
    ** The broker sees the pending acquisition of Juniper
 JNPR.N  as attractive in the near term, with Juniper coming out
of inventory digestion and recognising new cloud customers
    ** MS believes the deal is a wait-and-see on long-term value
recognition, but risk reward is skewed positively in the near
term
    ** "With checks and competitors pointing to little downside
to HPE's core numbers in the near term, we feel comfortable
stepping into HPE", MS says
    ** The broker says that there is little risk for HPE's Q4
results, after Cisco  CSCO.O  and Dell's  DELL.N  earnings over
the last couple of weeks showing that the "enterprise spend
environment is ok"
    ** The company is expected to report Q4 results late on
Thursday, with earnings at 56 cents per share, according to
LSEG's mean analyst estimate
    ** Out of 18 analysts that cover Hewlett Packard Enterprise,
nine rate the stock "strong buy" or "buy"​ and nine rate "hold" 

 (Reporting by Joao Manuel Mauricio)
 ((JoaoManuel.VicenteMauricio@thomsonreuters.com))