11:18 AM EDT, 06/30/2025 (MT Newswires) -- Hewlett-Packard Enterprise's ( HPE ) settlement with the US Department of Justice over antitrust concerns related to its acquisition of Juniper Networks ( JNPR ) is a positive development that preserves the rationale for the deal, BofA Securities said in a Monday report.

The settlement, subject to final court approval, clears a key regulatory hurdle for the acquisition, which is expected to drive earnings growth, margins, and multiple expansion as the combined entity can offer artificial intelligence infrastructure stacks that better compete in AI datacenter environments, according to the research note.

Under the settlement, Hewlett-Packard Enterprise ( HPE ) will divest Aruba Instant On campus and branch WLAN business to a DOJ-approved buyer in 180 days. HPE will also auction two licenses for Juniper MIST AIOps source code to ensure competition in the WLAN space, according to the note.

"We believe both concessions are narrow in scope and preserve the core strategic rationale of the [acquisition]," the BofA analysts said

BofA said it expects HPE "to see potential pro-forma EPS accretion of +8% for CY26 excluding any synergies and +14% assuming $200 million of cost synergies in CY26."

BofA reiterated its buy rating on the stock and lifted its price target to $23 per share from $20.

Hewlett-Packard Enterprise ( HPE ) shares were 13.6% higher in recent trading, while Juniper Networks ( JNPR ) was up 8.4%.

Price: 20.88, Change: +2.47, Percent Change: +13.39