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HP Solutions testing

buy Corning, Juniper, and Casa, however sell HP, Analyst Says | HP2-Q06 Test Prep and Practice Questions

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An employee pulling a crucible of molten glass from a furnace at the Corning Inc. Sullivan Park Science & technology core 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 specialty glass maker to obese from Equal Weight.

The upgrade became part of a broader overview of the 2021 outlook for computer hardware shares.

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

On Corning (GLW), “we see strength across corporations,” with its display glass phase most favorable near term,” he wrote. (word that other analysts are attracted to other elements of Corning’s enterprise, together with glass for cellphones and vaccine vials.)

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

On HP, he sees “secular headwinds” forward in each its laptop and printing groups, as the work-from-home tailwinds for PCs begins to fade.

lengthy additionally multiplied cost objectives for some stocks. amongst obese rated names, he boosted his target for F5 Networks (FFIV) to $235, from $215; for Keysight technologies (KEYS) to $161, from $135; for Motorola solutions (MSI), to $196, from $179; and for Pure Storage (PSTG), to $27, from $24. among 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 $eight, from $7.

long notes that the hardware community had a combined efficiency in 2020, with Covid-19 benefiting some corporations and hurting others. basically half of the organizations had their salary prospects enrich after preliminary shutdowns, led by using Apple, Corning, and communications gadget company Ubiquiti (UI). however commercial enterprise hardware groups like Pure Storage and Arista noticed reduced demand as buyers pulled back amid frequent financial uncertainty.

The analyst facets out that fee/salary multiples in 2020 extended for many of the stocks he follows, led via Apple, but he notes that the majority are below their three-yr average relative valuations versus the S&P 500. long thinks “fundamentals will count number in 2021,” with a macro restoration boosting the neighborhood.

His suitable choose is Motorola options, which he says should still benefit from a pick up in spending from the general public protection sector. He says that F5 “has been a fantastic inventory,” and he expects extra dissimilar growth because the company’s cloud and safety revenues increase. He likes each Pure Storage and Ciena (CIEN) “as boom names,” and he thinks Keysight “will proceed to work” as electronics testing and design enterprise’s growth extends well beyond 5G wireless.

long notes that he “neglected Apple again” and contends that “the hole between fundamentals and valuation is diverging even additional.” He expects a strong first half driven via iPhones, Macs, and iPads, however he sees a greater difficult 2nd half.

He says that whereas the close-term “looks good” for both NetApp (NTAP) and Arista, he concerns about competition for each searching further out. He sees few catalysts for legacy hardware agencies Dell applied sciences (DELL) and Hewlett-Packard business (HPE). concerning “stocks they don’t like” he cites Ubiquti, where he thinks “valuation appears prolonged,”

among the many stocks where 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, became up 0.5%, to $25.eighty four.

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

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