Hewlett Packard Snaps Up Determined AI; Shares Rise
Global enterprise information technology company Hewlett Packard Enterprise (HPE) announced that it has acquired San Francisco-based machine learning technology company, Determined AI. The terms of the deal have not yet been disclosed. Following the news, shares of the company gained 1.94% in Monday’s trading session and closed at $14.73.
With Determined AI’s expertise in machine learning training platforms and Hewlett Packard Enterprise’s leading AI and high-performance computing products, the acquisition is likely to lead to a greater quantum of accurate data insights into Hewlett Packard’s customers.
General Manager of Hewlett Packard Enterprise, Justin Hotard, said, “Determined AI’s unique open-source platform allows ML engineers to build models faster and deliver business value sooner without having to worry about the underlying infrastructure. I am pleased to welcome the Determined AI team, which shares our vision to make AI more accessible to our customers and users, into the HPE family.” (See Hewlett Packard Enterprise stock chart on TipRanks)
On June 2, Stifel Nicolaus analyst Matthew Sheerin reiterated a Buy rating on the stock with a price target of $20 (35.8% upside potential).
According to Sheerin, the company’s stronger-than-expected April quarter results are a positive sign. However, muted growth guidance in the third quarter of the fiscal year could be cause for concern.
Consensus among analysts is a Hold based on 5 Buy, 7 Holds, and 2 Sells. The average Hewlett Packard Enterprise analyst price target of $16.71 implies upside potential of 13.4% from current levels. Shares have gained 51.7% over the past year.
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