Wells Fargo downgraded HP Enterprise to Equal Weight from Overweight with a price target of $17, down from $21. The analyst is positive on the company’s strategic positioning in artificial intelligence, but says the fiscal Q2 results point to stronger backlog growth and conversion velocity at competitors. Networking weakness, albeit somewhat expected, will remain an overhang on HP Enterprise shares, the analyst tells investors in a research note. Wells says the company’s growth normalization amid customer inventory digestion is taking longer than expected. It is disappointed by HP Enterprise’s artificial intelligence momentum.
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