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Bernstein Initiates Coverage of Hewlett Packard Enterprise (HPE) with a Market Perform Rating, $24 PT
Yahoo Financeยท 2025-09-19 04:46
Core Insights - Hewlett Packard Enterprise Company (HPE) is identified as a strong growth stock under $30, with Bernstein initiating coverage at a Market Perform rating and a price target of $24 [1][3] - The company reported Q3 2025 earnings with total revenue of $9.1 billion, reflecting an 18% year-over-year increase [1][2] Revenue Breakdown - The Networking segment, bolstered by the acquisition of Juniper Networks, generated $1.7 billion in revenue, a significant 54% increase year-over-year [2][3] - The Server segment achieved revenue of $4.9 billion, up 16% year-over-year [3] - The Hybrid Cloud segment reported revenue of $1.5 billion, marking an 11% increase and its fourth consecutive quarter of year-over-year growth [3] - Annual Recurring Revenue (ARR) grew to $3.1 billion, representing a 75% increase [3] - The Financial Services segment saw a slight decline, with revenue of $886 million, down 1% [3] Strategic Developments - The acquisition of Juniper Networks is expected to yield cost synergies of approximately $600 million over the next three years [2]