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Fly News Breaks for May 25, 2016
HPE, CSC
May 25, 2016 | 07:18 EDT
After CSC (CSC) agreed to merge with HP Enterprise's (HPE) enterprise services business, Stifel says that CSC paid "a reasonable price" for the unit, while its near-term profit and free cash flow growth outlook has become more certain. Additionally, the similarity of the businesses should facilitate the realization of synergies, according to the firm. But the firm says that most of CSC's business remains "commodity-like," while its consulting capabilities remain "subscale." The firm keeps a Hold rating on the shares.
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