Bank of America Securities analyst Wamsi Mohan has reiterated their bullish stance on HPE stock, giving a Buy rating yesterday.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Wamsi Mohan has given his Buy rating due to a combination of factors, primarily driven by Hewlett Packard Enterprise’s (HPE) optimistic outlook on cost synergies and strategic integration with Juniper Networks. The company anticipates achieving at least $600 million in cost synergies over the next three years, which is an increase from the previous estimate of $450 million. This improvement is expected to positively impact non-GAAP EPS in the first year and free cash flow in the subsequent years.
Additionally, HPE’s management is confident in realizing further opportunities in its networking business and expects benefits from an improved global supply chain. The strategic integration with Juniper Networks is set to enhance HPE’s capabilities in AI infrastructure, with a focus on maintaining business continuity, aligning cloud product strategies, and advancing AI initiatives. These factors, combined with the potential for higher margins and revenue synergies, support the Buy rating and the revised price objective of $24.
According to TipRanks, Mohan is a 5-star analyst with an average return of 12.4% and a 61.15% success rate. Mohan covers the Technology sector, focusing on stocks such as Apple, Seagate Tech, and International Business Machines.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $25.00 price target.