HPE stock gets an upgrade at Wells Fargo

Wells Fargo analyst Aaron Rakers upgraded shares of Hewlett-Packard Enterprise Inc. to overweight from equal weight in a Tuesday note to clients, writing that he thinks the shares have been beaten down too much over concerns about the company's leverage. Rakers argued that those concerns overlook that $11.7 billion of the company's debt is linked to its HP Financing Services operations and therefore is backed to a "very strong" portfolio. "While our estimates reflect our expectation that HPE will face significant fundamental pressures, and we would fully expect ongoing investor questions/concern over the impact of enterprise workload migrations to public cloud, we believe this is more than adequately discounted in our adjusted estimates and the current valuation," he wrote. HPE shares are off 0.5% in premarket trading Tuesday. The stock has lost 21% over the past month as the S&P 500 has dropped 12%.

https://finance.yahoo.com/m/b420dc26...html?.tsrc=rss