HPE falls as Bernstein downgrades to 'market-perform', cuts PT

Juniper Networks

16/01/2024 11:37

** Shares of server maker Hewlett Packard Enterprise  HPE.N 
fall 1.89% to $15.6 premarket
    ** Bernstein downgrades HPE to "market-perform" from
"outperform" and lowers PT to $17 from $20
    ** Brokerage says the acquisition of Juniper Networks 
 JNPR.N  will not change HPE's growth profile, instead places co
in net debt position
    ** Acquisition of Juniper "undermines" opportunities for the
company to improve its share price - brokerage
    ** Bernstein says it would have preferred HPE to have
acquired smaller higher growth assets rather than JNPR
    ** "HPE will be inwardly focused for the next 1-2+ years
preparing for and integrating JNPR, which may present
opportunities for competitors (most notably Dell in our coverage
universe)" - brokerage
    ** 6 of 17 brokerages rate the stock "buy" or higher, 11
"hold"; their median PT is $18.5 - LSEG data
    ** HPE stock up ~6.4% in 2023

 (Reporting by Priyanka.G)
 ((Priyanka.g@thomsonreuters.com))