HP Enterprise Downgraded to Hold, Shares Plummet 11%

Hewlett Packard Enterprise (HPE) shares dropped nearly 11% on Monday due to an analyst downgrade by Evercore ISI's Amit Daryanani. The analyst changed his recommendation from "outperform" to "hold" citing the company's recent share price appreciation and high forward P/E ratio, which is above the five-year average. Daryanani maintained a $65-per-share price target and expressed concerns about the company's low-margin AI hardware business.