01:30 PM EST, 03/01/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target $1 to $17, on a P/E of 9x our CY 24 EPS view of $1.90, below HPE's five-year forward historical average, reflecting weak enterprise spend. We up our FY 24 EPS view $0.01 to $1.97 and keep FY 25's at $2.08. HPE posted Q1 EPS of $0.48 vs. $0.63, a $0.03 consensus beat. Sales declined 14% led by a 23% drop in Servers (Compute and HPC & AI combined), partly offset by growth in Intelligent Edge (+3%) and Hybrid Cloud (+10%). While server revenue suffered from weak networking demand and GPU supply constraints, HPE saw record backlogs and strong demand for its advanced processors. HPE's annual recurring revenue grew 42% to $1.4B on higher margin offerings with gross margins expanding 200 bps to 36.2%. Looking ahead, we expect server sales to improve in 2H 24 as AI system demand increases and GPU supplies recover. HPE's planned $14B acquisition of Juniper Networks should help double its networking market share, though we stay cautious on HPE's leveraged balance sheet, with net debt at $8.1B.