Hewlett-Packard Enterprise (HPE) Stock Gains on Deutsche Bank Rating

Hewlett-Packard Enterprise (HPE) stock is higher in early morning trading on Friday, after Deutsche Bank initiated coverage with a 'buy' rating and $23 price target.
By Rachel Graf ,

NEW YORK (TheStreet) -- Hewlett-Packard Enterprise (HPE) - Get Report stock is climbing by 0.68% to $13.37 in early morning trading on Friday, after Deutsche Bank initiated coverage with a "buy" rating and $23 price target on the stock. 

The coverage initiation follows Hewlett-Packard's split into two separate entities, HP Inc. (HP) and Hewlett Packard Enterprise, this past weekend.

Based in Palo Alto, CA, Hewlett Packard Enterprise sells commercial computers systems, software and tech services.

The company is "well positioned" to grow in both the private and public cloud markets, propelled by its broad hardware portfolio, Deutsche Bank said in a note.

Enterprise Services's margin improvements could drive an earnings upside of 20 cents per share during the next three years, according to the firm.

The volume server market, of which Hewlett-Packard Enterprise is the market leader, should experience mid-single-digit growth during the next few years, Deutsche Bank adds. 

Additionally, Technology Solutions generates about 40% of the company's operating profit and provides constant recurring revenue and cash flow. 

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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