{"id":27693,"date":"2025-08-28T01:02:19","date_gmt":"2025-08-28T01:02:19","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/27693\/"},"modified":"2025-08-28T01:02:19","modified_gmt":"2025-08-28T01:02:19","slug":"hpe-price-target-raised-to-28-as-corporate-ai-spending-accelerates","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/27693\/","title":{"rendered":"HPE Price Target Raised to $28 as Corporate AI Spending Accelerates"},"content":{"rendered":"\n

Hewlett-Packard Enterprise Company (NYSE:HPE<\/a>) is one of the AI Stocks Analysts Are Tracking Closely.<\/a>\u00a0<\/strong>On August 21, Morgan Stanley analyst Erik Woodring upgraded the stock from Equalweight to Overweight with a price target of $28.00 (from $22.00).<\/p>\n

The firm\u2019s rating affirmation reflects increased corporate spending on HPE\u2019s artificial intelligence (AI) and other products.<\/p>\n

The analysts noted that their \u201cchecks signaled healthy enterprise spending across the board in the quarter, led by anything AI compute or networking related, followed by client devices (strong PC refresh), and then servers\/storage, with networking growth inflecting positively for the first time in several quarters.\u201d<\/p>\n

\"HPE HPE Price Target Raised to $28 as Corporate AI Spending Accelerates <\/p>\n

The firm looks forward to HPE\u2019s Analyst Day on October 15, as the most important upcoming catalyst for the company.<\/p>\n

\n

\u201cWe are upgrading HPE to Overweight (from Equal-Weight) with a new $28 price target, or 11x our new FY26 EPS of $2.51. Our thesis is straight-forward \u2013 with the closure of JNPR, we see 18% upside to FY26 Consensus EPS, with EPS growing to $2.70-3.00 in FY27, and believe that as the market comes to better understand nearly half of HPE\u2019s business is networking, inclusive of more AI exposure (JNPR in xAI cluster), HPE\u2019s multiple will re-rate above the current 8x multiple. Our 11x target P\/E multiple doesn\u2019t even assume HPE garners a peer average multiple, and yet we still see 33% upside to shares from here. The biggest risks to our call are (1) execution \u2014 deals always look better on paper than in real-life and the risk here is that this deal is no different \/ the synergies mgmt outlined don\u2019t materialize as expected, (2) JNPR\/Aruba underperforms outside of the xAI exposure as competition is intense in networking and campus upgrade exposure is relatively limited (with risk of JNPR CEO leaving eventually), and (3) FCF and\/or capital returns continue to disappoint vs. expectations.\u201d<\/p>\n<\/blockquote>\n

Hewlett Packard Enterprise Company (NYSE:HPE), an American multinational technology company, provides high-performance computing systems, AI software, and data storage solutions for running complex AI workloads.<\/p>\n

While we acknowledge the potential of HPE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock<\/b><\/a>.<\/p>\n

READ NEXT: 10 Must-Watch AI Stocks for Investors<\/a> <\/strong>and 10 AI Stocks Analysts Are Tracking Closely<\/a><\/strong><\/p>\n

Disclosure: None.<\/p>\n","protected":false},"excerpt":{"rendered":"Hewlett-Packard Enterprise Company (NYSE:HPE) is one of the AI Stocks Analysts Are Tracking Closely.\u00a0On August 21, Morgan Stanley…\n","protected":false},"author":2,"featured_media":27694,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[291,1494,22424,289,290,18,22423,19,17,3906,22425,82],"class_list":{"0":"post-27693","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-ai-stock","10":"tag-ai-stocks-analysts","11":"tag-artificial-intelligence","12":"tag-artificialintelligence","13":"tag-eire","14":"tag-hpe","15":"tag-ie","16":"tag-ireland","17":"tag-morgan-stanley","18":"tag-price-target","19":"tag-technology"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/27693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=27693"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/27693\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/27694"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=27693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=27693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=27693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}