HPE stock gets a boost after Bank of America double upgrade

Bank of America analyst Wamsi Mohan upgraded shares of Hewlett-Packard Enterprise Co.

HPE, +4.92%

two notches on Monday, to buy from underperform, arguing that the company is showing structural improvements in its business trends. The company is sporting better free-cash flow with fewer one-time items and is also lessening its reliance on Tier 1 server sales, Mohan wrote. “Management is focused on driving some top line growth, despite weaker macro,” he said. “This growth would be a result of a combination of management’s strategic shift to higher-growth segments of the market including high-performance compute (HPC), HyperConverged infrastructure (HCI) and Intelligent Edge (IE).” Mohan upped his target price to $19 from $13. Shares are up 3.9% in Monday morning trading, and they’ve gained 10.5% over the past month. The S&P 500

SPX, +0.42%

has gained 0.4% in that time.

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