Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, March 10, 2017

Article Excerpt

HEWLETT-PACKARD ENTERPRISE CO., $22.37, New York symbol HPE, sells computing services and products, such as servers and analytics software, to businesses and governments. This week, HP Enterprise agreed to buy Nimble Storage Inc. (Nasdaq symbol NMBL). Based in California, this firm makes server computers that mainly use flash memory chips to store data instead of hard drives. Those devices are cheaper and take up much less space than traditional storage servers. The company will pay $1.0 billion for Nimble. That’s equal to 3% of HP Enterprise’s $37.0 billion market cap (the total value of all outstanding shares). The company expects to complete the purchase in April 2017. Nimble’s technology will enhance the prospects of HP Enterprise’s existing data-storage products, especially as more businesses shift to a cloud-computing model. However, relying on acquisitions to expand adds risk. OUR RECOMMENDATION: Hewlett-Packard Enterprise is a hold. Hewlett-Packard Enterprise recent coverage Hotline for January 20,…