Hewlett Packard Enterprise Co.'s (HPE) thinner margin structure and lower services revenue make it more vulnerable to trade tariffs, Morgan Stanley said in a research note Tuesday.
The Wall Street firm downgraded Hewlett Packard shares to equal-weight from overweight, while reducing its price target to $14 from $24.
"Our upgrade of HPE in December was based on accretion from the impending close of JNPR, which has been put on pause for now until DOJ trial in late summer," Morgan Stanley said.
"In the interim, thinner margin structure of HPE would provide less of a buffer to estimated tariffs, leaving us EW for now," the firm said
Morgan Stanley said its assessment could become more more positive in a few months once there is more clarity on the permanency and macro impact of tariffs and the Justice Department trial to block the proposed acquisition of Juniper Networks gets closer.
Price: 13.61, Change: +0.28, Percent Change: +2.06
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。