(CercleFinance.com) – The title Hewlett Packard Enterprise (HPE) fell heavily on the New York Stock Exchange on Friday after a downgrading of the board of BofA, which went from ‘buy’ to ‘neutral’ on the computer storage specialist.
Bank of America, which is also lowering its price target from $19 to $16, is concerned that consensus forecasts may be downgraded due to the deterioration of the supply chain within the sector, a phenomenon already invoked by Cisco this week.
The intermediary argues that beyond logistical issues due to lockdowns in China, the server maker faces heightened risk of a downturn in economic activity.
If he recognizes that HPE can today boast of a comfortable order book, BofA recalls that these contracts can be canceled at any time.
HPE shares are currently losing 7.2%, the third largest drop in the S&P 500 index, notably behind Deere (-10.8%) and its poorly received quarterly results.
Copyright © 2022 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
