Hewlett Packard Enterprise (HPE) is seen as an attractive investment opportunity with its upcoming acquisition of Juniper Networks, according to Morgan Stanley analyst Meta Marshall. Ahead of HPE’s earnings report Thursday, Marshall upgraded the stock to “overweight” and raised her price target to $28 from $23, indicating 28.6% upside potential.
The deal, worth around $14 billion, is expected to close before year-end or in early 2025. Marshall believes it will help boost HPE’s share multiple above its hardware and networking peers. She also notes that Juniper’s new cloud customers will contribute to the company’s growth in the near term.
Marshall’s optimism is based on her analysis of industry trends and competitor sentiment. While some analysts have mixed views on the stock, with 10 out of 18 covering it as hold-rated, Marshall believes HPE has a strong potential for upside due to its expected earnings growth and decreasing downside risks.
HPE shares have gained 28.2% in 2024 so far, with an additional 2.7% gain before Thursday’s bell.
Source: https://www.cnbc.com/2024/12/05/morgan-stanley-upgrades-hpe-sees-stock-surging-nearly-30percent.html