Hewlett Packard Enterprise (NYSE: HPE)

Gabelli research analyst Hendi Susanto discuses Hewlett Packard Enterprise (NYSE: HPE)

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Transcript:We are recommending Hewlett Packard Enterprise as a compelling investment idea in information technology infrastructure.

The company, headquartered in Palo Alto, CA, has 1.62 billion shares outstanding, and is trading around $13 per share for an equity market cap of $21.2 billion dollars.

HPE is the number one company in the server market and has a wide range of products that includes wireless network infrastructure, all flash network storage, hyper converge and hybrid IT infrastructure.

We believe the company can continue to expand operating margins through the elimination of stranded costs and execution following the recent spin from HP.

In addition to the attractive dividend that currently offers an almost 2% current return, we anticipate the company may begin to aggressively buy back its own shares.

We estimate non-GAAP EPS will grow from around $1.00 in FY 2017 to $1.20 in FY 2018, and $1.25 in FY19, and calculate a FY 2018 Private Market Value estimate of 19 dollars per share.



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