Barclays lowered the firm’s price target on HP Enterprise (HPE) to $20 from $27 and keeps an Overweight rating on the shares. The firm says that while most of the fiscal Q1 report was as expected, the gross margin miss of 200 basis points is concerning. HP Enterprise’s artificial intelligence server metrics “were okay” but a lower gross margin profile will pressure the shares in the near-term, the analyst tells investors in a research note. The firm cut estimates but stays Overweight the shares.
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Read More on HPE:
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- Hewlett Packard Enterprise Reports Strong Revenue Growth
- Closing Bell Movers: HP Enterprise down 20% as guidance disappoints
- HP Enterprise down 17% at $14.91 after Q1 earnings, below-consensus Q2 EPS guide
- HPE Earnings: Hewlett Packard Enterprise Stock Craters 17% on Soft Guidance
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