Information technology solutions provider Hewlett Packard Enterprise (NYSE:HPE) is nearing an agreement to acquire Juniper Networks (NYSE:JNPR), the Wall Street Journal reported. The deal, which is expected to be announced this week, is potentially valued at $13 billion. Following the news, shares of JNPR surged over 22% in yesterday’s extended trading hours, while HPE stock was down about 8%.
Juniper provides communications-network equipment like routers and switches to a diverse clientele. At the same time, the company’s cutting-edge artificial intelligence platform, Mist AI, utilizes machine learning to optimize the user experience in the realm of wireless network access.
The proposed acquisition is expected to bolster HPE’s presence in the artificial intelligence (AI) space. It is worth mentioning that HPE unveiled plans to launch a cloud computing service designed to support AI systems like ChatGPT in 2023.
Is HPE Stock a Good Buy?
Yesterday, J.P. Morgan analyst Samik Chatterjee reiterated a Buy rating on HPE stock and raised the price target to $22 (implying 24.15% upside potential) from $19.
With four Buy and eight Hold recommendations, HPE stock has a Moderate Buy consensus rating on TipRanks. Analysts’ average price target of $18.18 implies 2.6% upside potential from current levels. Shares of the company have gained 7.8% over the past year.
