Add as a preferred source on GoogleBarclays Downgrades Dell, Hewlett Packard Enterprise and NetApp
The bank moved all three stocks to Equal Weight from Overweight, citing enterprise spending, valuation and limited meaningful AI-driven demand.
Barclays lowered its ratings on Dell Technologies, Hewlett Packard Enterprise and NetApp to Equal Weight from Overweight, pointing to enterprise spending concerns, stock valuations and limited meaningful demand from artificial intelligence so far.
Shares of all three companies declined in premarket trading Wednesday, Oct. 14.
Barclays raised concerns about Dell’s revenue growth, saying it has relied more on higher prices amid memory inflation. The bank expects those prices to normalize or fall, which it said could slow growth.
For NetApp, Barclays highlighted cloud growth and strong margins while expecting storage demand to normalize after pricing changes.
Enna Lee
ReporterEnna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.