HP Enterprise price target lowered to $20 from $26 at BofA

BofA analyst Wamsi Mohan lowered the firm’s price target on HP Enterprise (HPE) to $20 from $26 and keeps a Buy rating on the shares. The firm views FY25 guidance for margins and EPS as “particularly disappointing” in light of the revenue growth expected, adding that a new cost takeout initiative despite revenue growth “signals a much worse competitive pricing dynamic, which we view as structurally more bearish and a modest impact from tariffs.” However, the announced cost takeout plan of $350M and an additional $450M if the Juniper (JNPR) acquisition closes successfully provides almost $800M, or approximately 60c in EPS, in total savings, which is “extremely meaningful,” the analyst added.