‘HPE stock is significantly undervalued’: CEO Antonio Neri

Shares of Hewlett Packard Enterprise Co (NYSE: HPE) have gained about 30% since late September but CEO Antonio Neri is convinced the tech stock is still trading at a deep discount.

Supply chain issues are easing

Speaking this morning with CNBC at the World Economic Forum in Davos, Neri confirmed that things were improving both in terms of supply chain as well as the labour market.

Just days ago, this multinational bought Pachyderm – a machine learning company to expand its AI services. It also settled a long-running lawsuit with Oracle for $30 million this week. HPE stock is still down 10% versus its 2019 (pre-pandemic) high.

HPE stock is trading at a discount

In late November, HPE said its revenue in the fourth financial quarter handily topped Street expectations. More importantly, CEO Neri expects this year to be a good one as well.

Hybrid world, he added, is a meaningful benefit for Hewlett Packard Enterprise Co.

His constructive view is in line with Wall Street that also currently rates the HPE stock at “overweight” with upside to just over $17 – a 10% premium on its current price.