10 AI News Dominating Wall Street Today

4. Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Hedge Fund Holders: 64

Hewlett Packard Enterprise Company (NYSE:HPE) is a technology company that provides high-performance computing (HPC) systems, software, and data storage solutions. On December 19, Deutsche Bank analyst Matt Niknam upgraded HP Enterprise (HPE) to “Buy” from Hold with an unchanged price target of $25. The buy rating is justified given the company’s attractive valuation and potential gains from the proposed Juniper acquisition slated to close in early 2025. The $5 billion Juniper deal is expected to expand HPE’s higher-margin networking business and result in significant cost synergies.

“We view the proposed Juniper acquisition positively, given the newfound scale the deal brings HPE in higher-margin networking, alongside sizable cost synergies”.

The analyst also told investors in a research note that HPE’s standalone operations are also improving. This is driven by stronger artificial intelligence and server sales, along with growth in the hybrid cloud and its existing networking segment.