BofA sees ‘some merits’ to HP Enterprise buying Juniper

BofA notes that The Wall Street Journal reported that HP Enterprise (HPE) is in advanced talks to buy Juniper Networks (JNPR) for about $13B and said that while such a deal would deviate from the strategy to shift to as-a-Service and the AI server narrative, it sees “some merits” in providing access to new channels, customers and a larger footprint in Networking. BofA maintains its Neutral rating and $19 price target on HP Enterprise shares as it argues that positives of a long-term mix shift to higher-margin revenue is balanced by the near-term weaker Enterprise spending environment.