Meta Marshall, an analyst from Morgan Stanley, maintained the Hold rating on Hewlett Packard Enterprise. The associated price target remains the same with $22.00.
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Meta Marshall has given his Hold rating due to a combination of factors related to Hewlett Packard Enterprise’s strategic developments and financial outlook. The company has announced an increase in expected cost synergies from the acquisition of Juniper Networks, raising the target to at least $600 million annually over the next three years. This increase from the previous target of $450 million suggests potential for improved financial performance, but the realization of these synergies will be gradual, with a significant portion expected in the later years.
Additionally, while Juniper’s recent performance has exceeded expectations with significant year-over-year growth in orders and revenue, the integration with HPE is still in its early stages. The acquisition is anticipated to enhance HPE’s IT platform and AI offerings, potentially leading to earnings growth. However, the full benefits of this acquisition and its impact on HPE’s overall financial health remain to be seen, warranting a cautious approach with a Hold rating.
According to TipRanks, Marshall is a 4-star analyst with an average return of 6.2% and a 58.09% success rate. Marshall covers the Technology sector, focusing on stocks such as Hewlett Packard Enterprise, Coherent Corp, and Arista Networks.