Hewlett Packard Enterprise (NYSE:HPE) Price Target Lowered to $59.00 at UBS Group

Key Points

• UBS lowered Hewlett Packard Enterprise’s price target from $65 to $59 while maintaining a “neutral” rating, implying 21.93% potential upside from the prior close.
• Analyst sentiment remains mixed: HPE has a consensus “Moderate Buy” rating and an average price target of $68.94, with recent targets ranging from $54 to $82.
• HPE reported stronger-than-expected quarterly results, including $1.11 adjusted EPS and $12.21 billion in revenue, while revenue grew 33.7% year over year and fiscal 2026 EPS guidance was set at $3.75–$3.85.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) had its price target lowered by equities research analysts at UBS Group from $65.00 to $59.00 in a report issued on Thursday, Benzinga reports. The brokerage presently has a "neutral" rating on the technology company's stock. UBS Group's target price indicates a potential upside of 21.93% from the company's previous close.

Several other research firms also recently weighed in on HPE. Wells Fargo & Company dropped their target price on shares of Hewlett Packard Enterprise from $67.00 to $54.00 and set an "equal weight" rating for the company in a report on Thursday. Citigroup increased their price target on shares of Hewlett Packard Enterprise from $70.00 to $74.00 and gave the company a "buy" rating in a research report on Friday, July 24th. Bank of America raised their price objective on shares of Hewlett Packard Enterprise from $80.00 to $82.00 and gave the stock a "buy" rating in a research note on Monday. Weiss Ratings upgraded Hewlett Packard Enterprise from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, June 29th. Finally, Morgan Stanley lowered their target price on Hewlett Packard Enterprise from $69.00 to $67.00 and set an "overweight" rating on the stock in a report on Thursday. Twelve research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Hewlett Packard Enterprise currently has an average rating of "Moderate Buy" and an average target price of $68.94.

Hewlett Packard Enterprise Price Performance

Hewlett Packard Enterprise stock traded down $3.44 during trading hours on Thursday, hitting $48.39. The stock had a trading volume of 22,487,443 shares, compared to its average volume of 20,792,844. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.09 and a quick ratio of 0.75. The stock has a market capitalization of $64.08 billion, a price-to-earnings ratio of 45.12, a PEG ratio of 0.54 and a beta of 1.43. Hewlett Packard Enterprise has a 1-year low of $19.84 and a 1-year high of $64.25. The stock's fifty day moving average is $49.63 and its two-hundred day moving average is $37.46.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.93 by $0.18. Hewlett Packard Enterprise had a return on equity of 11.91% and a net margin of 3.94%.The business had revenue of $12.21 billion during the quarter, compared to the consensus estimate of $11.97 billion. During the same quarter in the previous year, the company posted $0.44 EPS. The business's revenue was up 33.7% on a year-over-year basis. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. As a group, analysts predict that Hewlett Packard Enterprise will post 2.92 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Kirt P. Karros sold 18,785 shares of the stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $48.50, for a total value of $911,072.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.44% of the company's stock.

Institutional Investors Weigh In On Hewlett Packard Enterprise

Large investors have recently modified their holdings of the stock. Freemont Management S.A. increased its holdings in Hewlett Packard Enterprise by 197.1% in the fourth quarter. Freemont Management S.A. now owns 217,200 shares of the technology company's stock valued at $5,217,000 after buying an additional 144,100 shares during the last quarter. CIBC Asset Management Inc lifted its holdings in Hewlett Packard Enterprise by 60.2% during the 4th quarter. CIBC Asset Management Inc now owns 337,691 shares of the technology company's stock worth $8,111,000 after buying an additional 126,938 shares during the last quarter. Irenic Capital Management LP acquired a new position in shares of Hewlett Packard Enterprise in the 1st quarter worth approximately $18,691,000. Banque Cantonale Vaudoise grew its position in shares of Hewlett Packard Enterprise by 73.6% in the 4th quarter. Banque Cantonale Vaudoise now owns 234,456 shares of the technology company's stock worth $5,632,000 after acquiring an additional 99,412 shares in the last quarter. Finally, Handelsbanken Fonder AB increased its holdings in shares of Hewlett Packard Enterprise by 33.0% in the 4th quarter. Handelsbanken Fonder AB now owns 615,334 shares of the technology company's stock valued at $14,780,000 after acquiring an additional 152,810 shares during the last quarter. Institutional investors and hedge funds own 80.78% of the company's stock.

Key Hewlett Packard Enterprise News

Here are the key news stories impacting Hewlett Packard Enterprise this week:

• Positive Sentiment: Strong quarterly results and higher guidance: HPE reported fiscal Q3 adjusted EPS of $1.11, exceeding the approximately $0.93–$0.95 consensus, while revenue rose 33.7% year over year to $12.21 billion, above expectations. Management raised fiscal 2026 EPS guidance to $3.75–$3.85 and projected revenue of $46–$47 billion, both above analyst estimates. HPE Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: AI and networking demand remains robust: Record orders and backlog, broad-based enterprise AI demand and surging networking orders support HPE’s longer-term growth outlook. The company also forecast fiscal 2027 revenue growth of 13%–17% and at least $5 billion in free cash flow. HPE Q3 Earnings Call Highlights AI Demand, Networking Shift
• Positive Sentiment: Strategic networking expansion: HPE expanded its collaboration with Oracle to deploy Juniper Networking technology across Oracle’s AI data centers, potentially strengthening its position in gigawatt-scale AI infrastructure. HPE and Oracle Deepen Networking Collaboration
• Neutral Sentiment: Analyst views remain mixed: Barclays raised its target to $79 and Morgan Stanley maintained an overweight rating while trimming its target to $67. Wells Fargo lowered its target sharply to $54 and assigned an equal-weight rating, indicating more limited near-term upside.
• Neutral Sentiment: HPE declared a quarterly dividend of $0.1425 per share, with a 1.1% annualized yield. The company will also host a Networking Investor Day on September 30, which could provide additional detail on its growth strategy.
• Negative Sentiment: Supply constraints overshadow the beat: Networking orders are reportedly exceeding available supply, raising concerns that component shortages could delay revenue recognition and limit HPE’s ability to capitalize fully on AI demand.
• Negative Sentiment: Margin sustainability is under scrutiny: Investors are questioning whether recent profit improvement can persist as AI systems represent a larger portion of the product mix, potentially creating pricing pressure and lower margins. High expectations following the stock’s substantial prior rally may also be contributing to profit-taking.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise (HPE) is an enterprise technology company that designs, develops and sells IT infrastructure, software and services for business and government customers. Its core offerings span servers, storage, networking, and related software, together with consulting, integration and support services aimed at modernizing and managing enterprise IT environments. HPE's product portfolio includes systems for traditional data centers as well as solutions for high-performance computing, edge computing and telecommunications infrastructure.

A major focus for HPE is hybrid cloud and consumption-based IT.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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