HP Enterprise and Pure Storage are Stifel’s best choices for the technology supply chain

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The time of dreams

Hewlett Packard Enterprise


Pure storage

are Stifel’s top picks for OEMs in 2022, with analysts expecting stronger growth in hardware infrastructure spending, but warning that supply constraints could be a hindrance.

Stifel analysts said in a note Friday that they “expect stronger growth in hardware infrastructure spending as businesses and SME customers resume projects delayed due to Covid” but added that One hurdle they see is “supply constraints, which have plagued most OEMs over the past two quarters.” They expect the pressures on the supply chain to ease at the end of the day. second half of 2022.

According to analysts, HPE should “see sales growth accelerate as supply conditions ease.”

For its fiscal fourth quarter ended Oct. 31, HPE reported revenue of $ 7.35 billion, up 2% from a year earlier, but stable after adjusting for currency. Sales rose 7% sequentially, but were slightly below Wall Street’s expectations of $ 7.38 billion.

Revenue for the year increased 3% to $ 27.8 billion.

Pure storage, as well as


are companies “well positioned to continue to gain market share over their peers, given their strong next-gen 100 flash storage offerings in addition to their growing cloud-based software offerings,” said the Stifel analysts.

Stifel said he expects double-digit revenue growth from “Pure Storage and” increased margins in the coming quarters as Pure continues to gain traction with businesses and customers. commercial as well as large-scale cloud providers “.

Analysts raised their price target on Pure Storage to $ 37 from $ 33.

Hewlett Packard Enterprise shares edged up Friday to $ 15.90. The stock gained 34% in 2021. Pure Storage rose 0.3% to $ 32.71 and is up 45% this year.

Write to Joe Woelfel at [email protected]

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