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HP Enterprise shares gained more than 3 percent after an upgrade by Evercore analyst Amit Daryanani

Hewlett Packard Enterprise (HPE - Get Report) shares added 4.2% Monday after Evercore ISI analyst Amit Daryanani raised his rating to in line from underperform.

He set a new price target of $15, up from $13, Barron's reported.

The shares of HPE, a supplier of IT infrastructure products and services, finished at $14.95 Monday.

HP Enterprise shares had slid 23% in 2019 through Friday and Daryanani views them as cheap. They trade at 8 times forward earnings and 9 times enterprise value to free cash flow, he calculates.

Daryanani likes the company's "cash flow resiliency," Barron's reports. He sees underlying free cash flow above $2 billion a year.

HPE's long-term target of more than $2.5 billion in annualized free cash flow is on the mark, he says.

HP Enterprise's $1.4 billion purchase of Cray in September could add to earnings per share, Daryanani says.

In addition, recent data indicate that H3C, a joint venture with China's Unisplendour, has been outselling competitors Cisco (CSCO - Get Report) and Dell (DELL) in China, he says, according to Barron's.

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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.