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Test Number : HP2-E36
Test Name : Selling HP Virtualization Solutions
Vendor Name : HP
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HP Selling testing

purchase Corning, Juniper, and Casa, but sell HP, Analyst Says | HP2-E36 Latest Questions and real questions

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An worker pulling a crucible of molten glass from a furnace on the Corning Inc. Sullivan Park Science & know-how center in Corning, N.Y. Victor J. Blue/Bloomberg

Corning shares had been trading greater Thursday after Barclays analyst Tim lengthy raised his score on the uniqueness glass maker to overweight from Equal Weight.

The Boost become part of a broader overview of the 2021 outlook for laptop hardware stocks.

lengthy additionally upgraded Juniper Networks (ticker: JNPR) to overweight from Equal Weight, boosting his goal to $28 from $24, and he lifted Casa methods (CASA) to obese from Equal Weight, with a new target of $9, up from $6. lengthy downgraded HP Inc. (HPQ) to Underweight from Equal Weight, retaining his $22 target.

On Corning (GLW), “we see electricity throughout corporations,” with its reveal glass section most favorable close term,” he wrote. (observe that other analysts are attracted to different points of Corning’s business, including glass for cellphones and vaccine vials.)

For Juniper, he expects wireless networking, metro routing, and the cloud to provide upside. For Casa, a small-cap communications device business, he likes the enterprise’s “diversification, execution, and operating leverage.”

On HP, he sees “secular headwinds” ahead in both its workstation and printing organizations, because the work-from-domestic tailwinds for PCs starts to fade.

lengthy also accelerated rate objectives for some shares. amongst obese rated names, he boosted his goal for F5 Networks (FFIV) to $235, from $215; for Keysight applied sciences (KEYS) to $161, from $a hundred thirty five; for Motorola options (MSI), to $196, from $179; and for Pure Storage (PSTG), to $27, from $24. amongst Equal Weight rated shares, he raised his target for Apple (AAPL) to $116, from $one hundred; for Arista Networks (ANET) to $294, from $235; and for Harmonic (HLIT), to $8, from $7.

long notes that the hardware neighborhood had a mixed performance in 2020, with Covid-19 benefiting some organizations and hurting others. essentially half of the companies had their salary potentialities Boost after preliminary shutdowns, led via Apple, Corning, and communications equipment business Ubiquiti (UI). but business hardware businesses like Pure Storage and Arista noticed decreased demand as consumers pulled returned amid frequent economic uncertainty.

The analyst features out that rate/revenue multiples in 2020 extended for many of the shares he follows, led by means of Apple, however he notes that almost all are under their three-12 months common relative valuations versus the S&P 500. long thinks “fundamentals will depend in 2021,” with a macro restoration boosting the group.

His top decide on is Motorola options, which he says should still advantage from a prefer up in spending from the general public defense sector. He says that F5 “has been an excellent inventory,” and he expects extra distinct expansion because the company’s cloud and security revenues increase. He likes both Pure Storage and Ciena (CIEN) “as increase names,” and he thinks Keysight “will continue to work” as electronics checking out and design company’s growth extends smartly past 5G wireless.

lengthy notes that he “neglected Apple again” and contends that “the hole between fundamentals and valuation is diverging even extra.” He expects a strong first half driven by using iPhones, Macs, and iPads, but he sees a extra difficult 2d half.

He says that whereas the near-time period “looks respectable” for both NetApp (NTAP) and Arista, he worries about competition for both looking additional out. He sees few catalysts for legacy hardware organizations Dell technologies (DELL) and Hewlett-Packard enterprise (HPE). relating to “shares they don’t like” he cites Ubiquti, the place he thinks “valuation appears prolonged,”

among the many stocks the place long made ranking adjustments, Corning was up three%, to $38.30; Juniper become up 2.9%, to $24.18; Casa spiked $12.5%, to $7.ninety five; and HP, despite the downgrade, become up 0.5%, to $25.eighty four.

Write to Eric J. Savitz at eric.savitz@barrons.com


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