Moderate valuation and sensible acquisition in the networking business: JPMorgan resumes coverage of HP Enterprise. Target: $30 (+48%)

Hewlett Packard Enterprise (HPE;i) recently delivered strong quarterly results. These were driven by the server business, which benefited from AI demand. Other business areas also showed strength: Intelligent Edge grew by 7% to $1.2 billion, and Hybrid Cloud increased by 13% to $1.5 billion. Revenue and earnings per share exceeded expectations. HPE is increasingly focusing on solutions for the AI era, particularly for the construction and operation of so-called "AI Factories" – that is, AI data centers. CEO Antonio Neri emphasized: "Generative,...