Needham & Company Starts HP Enterprise (HPE) at Hold

Needham & Company initiates coverage on HP Enterprise (NYSE: HPE) with a Hold rating.

Analyst Richard Kugele commented, "HP just completed the largest company split in history, and for that we give them enormous credit. Further, we agree that turning around a unified HP was too daunting a task given secular headwinds in nearly every segment. HPE is now free to acquire as necessary, complete another restructuring, and if unsuccessful (in theory) even sell itself. In the interim, we are very cautious on legacy tech companies (especially HPE) given major challenges in servers (white box), software (subscale), and services (EDS challenged with costs). Storage is mixed with 3PAR a decent platform in some areas but other traditional storage is declining faster. Finally, after 5yrs HPE is abdicating on cloud, shutting down Helion in 1/16. With comparably challenged companies trading at 8-9x EPS, we see the stock as already fully valued. Initiate with Hold."

For an analyst ratings summary and ratings history on HP Enterprise click here. For more ratings news on HP Enterprise click here.

Shares of HP Enterprise closed at $14.72 yesterday.

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