Here's Why Hewlett Packard Enterprise (HPE) Stock is Down Today
NEW YORK (TheStreet) -- Hewlett Packard Enterprise Co. (HPE) - Get Report shares are declining 1.11% to $14.24 on Monday as analysts believe investors are more optimistic about HP Inc. (HPQ) since the Hewlett Packard separation a week ago.
Specifically, shareholders think that HP Inc. cash flow has less risk. However, analysts noted that both companies' cash flow is risky.
"For example, we believe that HPE FCF will decline by about 65% y/y in FY15 (which we think includes restructuring payments) and HPQ FCF will decline by about 55% in FY15," analysts said.
Adding to this sentiment, Hewlett Packard Enterprise is "very poorly positioned" for the cloud, according to the firm's note.
Overall, analysts are expressing doubts about the company, long term.
Earlier this morning, the firm initiated coverage of Hewlett Packard Enterprise at "market perform" with a price target of $16.
Based in Palo Alto, CA, Hewlett Packard Enterprise provides technology solutions to business and public sector enterprises.
data by