- Shares of Hewlett Packard Enterprise Co (NYSE: HPE) received a price target of $16 from BofA Securities. These are the details.
Shares of Hewlett Packard Enterprise Co (NYSE: HPE) received a price target of $16 from BofA Securities. And BofA Securities analyst Wamsi Mohan adjusted HP Enterprise’s rating from a “Buy” rating to a “Neutral” rating.
Mohan adjusted the rating while citing that the large backlog creates risk.
“Given the deterioration of the supply chain due to recent blockages in China (negative commentary from Cisco, continued logistical challenges due to prolonged blockages), we expect negative estimate revisions and we are increasingly worried about decelerating orders. We see some risk to HPC towers due to slower customer acceptance and associated margin pressure. We are downgrading our rating to Neutral and our PO to $16 ( instead of $19) on 8x C23 EPS (before 9x C22 EPS). We are moving to a C23-based rating,” Mohan wrote in a research note. “Our neutral rating is based on the risk-reward balance: positives include mix shift to high-margin software/SaaS (software as a service) and H3C-related optionality weighed by risk of economic downturn, component shortages and backlog high, which is voidable. Upside risks: macro/supply chain recovery. Downside risks: longer slowdown, increased competition. »
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