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HOUSTON - Hewlett Packard Enterprise (NYSE:HPE), a $26.6 billion technology giant currently rated as undervalued according to InvestingPro analysis, announced Wednesday the appointment of technology executive Robert Calderoni to its board of directors and the formation of a new Strategy Committee as part of an agreement with activist investor Elliott Investment Management.
Calderoni, who currently serves as Chairman of KLA Corp., will join HPE’s board effective July 16, 2025, and will chair the newly formed Strategy Committee. The committee will assess HPE’s business strategies and identify opportunities for additional value creation, according to a company press release. The appointment comes as HPE demonstrates strong financial performance, with revenue growth of 11.8% over the last twelve months and a consistent track record of returning value to shareholders through dividends, which it has maintained for 11 consecutive years.
The Strategy Committee will include existing board members Gary Reiner, Raymond Lane, and Charles Noski. Calderoni will also join HPE’s Integration Committee, which was established following the company’s recent acquisition of Juniper Networks.
"HPE is one of the most storied technology companies in the world, and I am excited to join its board," Calderoni said in the statement. "I look forward to leveraging my networking, infrastructure and software experience as I work closely with current Board members and the management team to explore options for value creation."
The changes come as part of a cooperation agreement with Elliott Investment Management, which includes an information-sharing provision allowing ongoing dialogue between Elliott and HPE, along with customary standstill and voting provisions.
Jason Genrich, Elliott Partner and Senior Portfolio Manager, expressed optimism about the appointment, stating that Calderoni’s leadership of the Strategy Committee "will help HPE identify meaningful operational and strategic opportunities for shareholder value creation."
Calderoni brings over 30 years of leadership experience in hardware, software and IT services. He previously served as Executive Chairman and interim CEO of Citrix Systems, and as President of SAP’s Cloud business following SAP’s acquisition of Ariba, where he had served as CEO.
The full agreement between HPE and Elliott will be filed with the Securities and Exchange Commission. With seven analysts recently revising earnings estimates upward and the company maintaining a healthy 2.56% dividend yield, HPE continues to show promising potential. For deeper insights into HPE’s financial health and growth prospects, including exclusive ProTips and comprehensive analysis, visit InvestingPro, where you’ll find detailed research reports and expert commentary on over 1,400 US stocks.
In other recent news, Hewlett Packard Enterprise (HPE) has been in the spotlight due to several significant developments. The company announced a cooperation agreement with Elliott Investment Management, leading to the formation of a new Strategy Committee aimed at identifying value creation opportunities. Robert Calderoni, a technology executive, will chair this committee and join HPE’s Integration Committee following the acquisition of Juniper Networks. Meanwhile, S&P Global Ratings revised Juniper Networks’ outlook to stable from negative after its acquisition by HPE, reflecting expectations of full integration into HPE’s operations.
HPE’s acquisition of Juniper Networks has prompted several analyst updates. UBS maintained a Neutral rating on HPE, noting increased expected cost synergies from the acquisition, which are projected to reach $600 million, although the transaction is expected to be free cash flow dilutive in the first year. BofA Securities raised its price target for HPE to $24, citing these increased synergy expectations, which are anticipated to be accretive to earnings per share and free cash flow in the coming years. Similarly, Evercore ISI increased its price target to $25, maintaining an Outperform rating, following HPE’s detailed integration plans and updated synergy targets.
HPE’s CEO, Antonio Neri, attributed the additional synergies to improvements in the networking business and supply chain benefits. The company plans to integrate Juniper’s AI solutions across its product portfolio, with former Juniper CEO Rami Rahim taking on a leadership role in HPE’s networking division. These developments highlight HPE’s strategic focus on enhancing its operational efficiency and expanding its market presence through the Juniper acquisition.
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