HP Enterprise initiated with a Sector Weight at KeyBanc

As previously reported, KeyBanc analyst Brandon Nispel initiated coverage of HP Enterprise (HPE) with a Sector Weight rating. KeyBanc believes HP Enterprise is “strategically poorly positioned,” noting the company is “lacking in strength in Networking” with the proposed Juniper transaction on pause, and adding that HP Enterprise has “underperformed in terms of growth in Servers while margins are compressing.” The firm concluded that HP’s strategic positioning is “in question,” and its business “appears to be an underperformer compared to peers,” making the stock “fairly valued.”