HPE: On course for growth despite regulatory hurdles with Juniper acquisition

Antonio Neri, CEO of the leading technology company Hewlett Packard Enterprise (HPE), is optimistic about the planned acquisition of network specialist Juniper Networks. With an investment volume of 14 billion dollars, the project is among HPE's most ambitious since the acquisition of Aruba Networks in 2015 for three billion dollars. According to Neri, the deal proves advantageous for the customer base and strengthens national security. Nevertheless, the project presents challenges to those responsible. According to media reports, HPE has engaged intensively with antitrust regulators from the U.S. Department of Justice, who have increased efforts against market-distorting mergers under the Biden administration. Recent successes of these efforts can be seen, for example, in the blocked merger between Tapestry and Capri Holdings. Neri is, however, confident that approval will be granted by early 2025. Despite uncertainties, the company continues to perform in line with Wall Street expectations. After the market closed on Thursday, quarterly figures were presented as anticipated. Particularly in the area of server infrastructure, driven by the expansion of AI technologies, demand remained strong. Analysts are also optimistic: Citigroup analyst Asiya Merchant raises her rating for HPE to "Buy" and predicts a stock value of 26 dollars. Merchant sees potential for revenue growth and margin enhancement in the Juniper acquisition. In total, nine out of 18 analysts rate HPE as a buy, while the other nine issue a hold recommendation.