HP Enterprise (HPE) – Spinning-off its way to happiness ?
DISCLAIMER: THIS IS NOT INVESTMENT ADVICE. PLEASE DO YOUR OWN RESEARCH !!!!!
Management summary:
- HPE, the enterprise arm of the old HP looks attractive on a sum-of-part valuation
- following 3 spin-offs in 2 years, my model indicates an upside of ~40% in the base case and ~70% in an optimistic case
- Some “soft catalysts” are on the horizon such as the upcoming Software “spin -off merger”, further share buy backs and a “normal” financial year
- management acts shareholder friendly, has a clear strategy and has created significant shareholder value since 2011
- major risk is clearly a further detoriation of the Enterprise solution business which had a bad start into fiscal 2017
value and opportunity 