DVMT - Dell IPO Can Act As A Catalyst For HPE's Rerating
Hardware companies like Hewlett Packard Enterprise (HPE) are out of favor on Wall Street. Software is king and hardware is viewed as commodity-like. The resulting low valuation is interesting but not a sufficient reason to invest in HPE. You also need a catalyst to unlock the value. Dell’s upcoming IPO can be that catalyst.
Hardware out of favor
Hewlett Packard Enterprise was spun off from Hewlett Packard (HPQ) in 2015. HPE still has a weight of 7.5% in Invesco S&P Spin-Off ETF (CSD).
Hewlett Packard Enterprise’s enterprise-level servers, storage,