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Hewlett Packard Enterprise Company

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Hewlett Packard’s massive restructuring initiatives keep us optimistic. On one hand, it is offloading low-margin businesses such as Enterprise Services and Software, which, in our opinion, will improvise the company’s margins over the long run. And on the other hand, it is enhancing its capabilities in the hybrid IT model as evident from the acquisitions of SimpliVity, Cloud Cruiser and Nimble Storage. Moreover, the company’s announcement of returning $7 billion to shareholders is also a positive. Additionally, the encouraging bottom-line guidance for Q3 and raised outlook for fiscal 2018 is favorable. However, the challenge imposed on the company due to the acquisition of EMC by Dell is somewhat of a headwind. Notably, the stock has underperformed the industry over the past one year.


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