Hewlett Packard Enterprise Co
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$82.00 | Wsjr | Dhznpxbyj |
HPE Earnings: Networking and AI Helping To Offset Weaker Server Demand As We Maintain Our $16 FVE
We maintain our $16 fair value estimate for shares of no-moat HP Enterprise, or HPE, after the firm’s fiscal third-quarter results met guidance and the outlook for the fourth quarter met our expectations. HPE continues to enjoy robust networking demand, and is garnering artificial intelligence-related orders for its supercomputers. Standard compute servers (not for AI) and storage arrays are seeing softer demand with customers still working down their own inventories, but we retain a positive view on HPE’s profitability even amid weaker demand. We see shares as fairly valued.