Hewlett Packard Enterprise Earnings: No Surprises in Results, Maintaining Our Fair Value of $23

Hewlett Packard Enterprise reported fiscal third-quarter results largely as we expected. With few surprises and no major updates to full-year guidance, we maintain our fair value estimate of $23. We view shares as mildly undervalued (20% as of this writing), and we think executing on additional growth within artificial intelligence servers, improving margins within the hybrid cloud business, and stronger growth within the hybrid cloud and intelligent edge segments should all help shares rerate higher over time. Another important part of our thesis is that the Juniper acquisition is generally satisfactory (still on track for an end-of-2024 or early 2025 close), as we think this could derisk some of the worries about poor execution on what is a large acquisition for HPE.