Pivotal Research analyst Louis Miscioscia assigned a Hold rating to Hewlett Packard Enterprise (NYSE: HPE) today and set a price target of $20. The company’s shares closed yesterday at $17.41.
Miscioscia wrote:
“We move our but keep FY19 at $1.55 as we expect revenue growth to slow and a higher FY19 tax rate. Our PT remains $20, or 13x our FY19E. The Good. HPE has changed their reporting categories to Hybrid IT which includes servers, storage, networking, maintenance and services and is 82% of revenue and grew 4% in cc with 10.3% OM. The Intelligent Edge is 8% of revenue and grew a very strong 14% YY in cc and is mostly Aruba networking. Finally, Financial Services was 11% of revenue and grew 1% in CC. The growth came from a good macro, when taking out FX. HPE is not suggesting that the growth will continue at this pace as FX benefit is waning as the dollar has regained strength and 2H18 YY comp numbers get tougher, but they still expect growth. Servers were up 6%, but had the continued drag or T1. Increased pricing is holding and DRAM cost increases are moderating.”
Miscioscia has an average return of 30.5% when recommending Hewlett Packard Enterprise.
According to TipRanks.com, Miscioscia is ranked #3725 out of 4799 analysts.
Currently, the analyst consensus on Hewlett Packard Enterprise is Moderate Buy and the average price target is $20.50, representing a 17.7% upside.
In a report released yesterday, BMO Capital also assigned a Hold rating to the stock with a $19 price target.
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Hewlett Packard Enterprise’s market cap is currently $27.28B and has a P/E ratio of 18.52. The company has a Price to Book ratio of 1.14.
Based on the recent corporate insider activity of 122 insiders, corporate insider sentiment is negative on the stock.
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Hewlett Packard Enterprise Co. engages in the provision of information technology, technology and enterprise products, solutions, and services. It operates through the following segments: Enterprise Group, Financial Services, and Corporate Investments.
