Hewlett Packard Enterprise (NYSE:HPE) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised HPE’s price target to $76 from $74 and maintained a “buy” rating, implying 53.77% upside from the prior close. The analyst consensus remains “Moderate Buy,” with an average target of $69.06.
• HPE reported stronger-than-expected quarterly results, with adjusted EPS of $1.11 and revenue of $12.21 billion, up 33.7% year over year. The company also issued fiscal 2026 EPS guidance of $3.75–$3.85.
• Despite the positive results, HPE shares fell 4.6% to $49.42, while investors remain concerned about networking supply constraints, margin sustainability and mixed analyst views.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) had its price objective increased by stock analysts at Citigroup from $74.00 to $76.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage currently has a "buy" rating on the technology company's stock. Citigroup's price objective would indicate a potential upside of 53.77% from the stock's previous close.

A number of other research firms have also weighed in on HPE. Bank of America upped 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. Zacks Research lowered shares of Hewlett Packard Enterprise from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 3rd. UBS Group reduced their price target on Hewlett Packard Enterprise from $65.00 to $59.00 and set a "neutral" rating on the stock in a research report on Thursday. The Goldman Sachs Group upped their target price on Hewlett Packard Enterprise from $32.00 to $79.00 and gave the company a "buy" rating in a research report on Wednesday, June 3rd. Finally, Barclays raised their target price on shares of Hewlett Packard Enterprise from $67.00 to $79.00 and gave the stock an "overweight" rating in a report on Thursday. Twelve analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $69.06.

Hewlett Packard Enterprise Trading Down 4.6%

Shares of HPE stock traded down $2.40 on Thursday, reaching $49.42. 27,369,546 shares of the company's stock were exchanged, compared to its average volume of 20,820,842. The company's fifty day simple moving average is $49.63 and its 200 day simple moving average is $37.46. Hewlett Packard Enterprise has a 52 week low of $19.84 and a 52 week high of $64.25. The company has a current ratio of 1.09, a quick ratio of 0.75 and a debt-to-equity ratio of 0.72. The stock has a market capitalization of $65.45 billion, a PE ratio of 46.12, a P/E/G ratio of 0.54 and a beta of 1.43.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last released its earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $11.97 billion. During the same quarter last year, the firm posted $0.44 earnings per share. The business's revenue was up 33.7% compared to the same quarter last year. 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 forecast that Hewlett Packard Enterprise will post 2.92 EPS for the current year.

Insider Buying and Selling at Hewlett Packard Enterprise

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

Hedge Funds Weigh In On Hewlett Packard Enterprise

Several hedge funds have recently bought and sold shares of the company. Parrish Capital LLC purchased a new position in shares of Hewlett Packard Enterprise in the second quarter valued at approximately $201,000. Amundi grew its position in shares of Hewlett Packard Enterprise by 61.0% in the 2nd quarter. Amundi now owns 6,875,028 shares of the technology company's stock valued at $310,132,000 after buying an additional 2,604,937 shares during the last quarter. Advus Financial Partners LLC acquired a new stake in Hewlett Packard Enterprise during the 2nd quarter worth approximately $244,000. Financial Insights Inc. purchased a new position in shares of Hewlett Packard Enterprise during the 2nd quarter worth approximately $237,000. Finally, California State Teachers Retirement System grew its position in Hewlett Packard Enterprise by 4,299.0% during the second quarter. California State Teachers Retirement System now owns 92,484,612 shares of the technology company's stock worth $4,171,981,000 after buying an additional 90,382,225 shares during the period. Institutional investors and hedge funds own 80.78% of the company's stock.

Hewlett Packard Enterprise News Summary

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source