Hewlett Packard Enterprise (NYSE:HPE) Stock Rating Upgraded by Daiwa Securities Group

Key Points

• Daiwa Securities Group upgraded HPE to “outperform” from “neutral” and set a $75 price target, implying 16.1% upside. The analyst consensus remains “Moderate Buy,” with an average target of $72.06.
• HPE recently reported stronger-than-expected quarterly results, with $1.11 in EPS and $12.21 billion in revenue; sales increased 33.7% year over year.
• Shares opened at $64.60 and have rallied near their 52-week high, while HPE’s AI infrastructure and networking prospects have attracted higher targets from several analysts. Insiders have also sold shares under pre-arranged trading plans.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) was upgraded by equities research analysts at Daiwa Securities Group from a "neutral" rating to an "outperform" rating in a research report issued on Friday, Briefing.com reports. The firm presently has a $75.00 target price on the technology company's stock. Daiwa Securities Group's target price suggests a potential upside of 16.10% from the stock's previous close.

Several other equities analysts also recently weighed in on the company. Truist Financial restated a "buy" rating and set a $75.00 price target (up from $70.00) on shares of Hewlett Packard Enterprise in a report on Thursday. Raymond James Financial upped their target price on shares of Hewlett Packard Enterprise from $74.00 to $86.00 and gave the company an "outperform" rating in a research note on Thursday, September 3rd. UBS Group lifted their target price on shares of Hewlett Packard Enterprise from $59.00 to $66.00 and gave the stock a "neutral" rating in a research report on Thursday. Argus reissued a "buy" rating and issued a $70.00 target price on shares of Hewlett Packard Enterprise in a report on Friday, September 4th. Finally, Citigroup boosted their target price on shares of Hewlett Packard Enterprise from $76.00 to $92.00 and gave the company a "buy" rating in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $72.06.

Hewlett Packard Enterprise Price Performance

Shares of Hewlett Packard Enterprise stock opened at $64.60 on Friday. The company has a quick ratio of 0.72, a current ratio of 1.11 and a debt-to-equity ratio of 0.65. The business has a 50 day moving average of $55.38 and a 200 day moving average of $43.05. The company has a market cap of $85.75 billion, a PE ratio of 33.65, a P/E/G ratio of 0.57 and a beta of 1.39. Hewlett Packard Enterprise has a 52 week low of $19.84 and a 52 week high of $67.10.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last issued its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, topping the consensus estimate of $0.93 by $0.18. The business had revenue of $12.21 billion during the quarter, compared to analyst estimates of $11.97 billion. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. Hewlett Packard Enterprise's quarterly revenue was up 33.7% compared to the same quarter last year. During the same period last year, the business posted $0.44 earnings per share. 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, equities research analysts forecast that Hewlett Packard Enterprise will post 3.33 earnings per share for the current year.

Insider Transactions at Hewlett Packard Enterprise

In related news, EVP Rami Rahim sold 34,456 shares of the stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $61.42, for a total value of $2,116,287.52. Following the sale, the executive vice president directly owned 875,133 shares of the company's stock, valued at $53,750,668.86. This represents a 3.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Antonio F. Neri sold 250,000 shares of the firm's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $60.44, for a total value of $15,110,000.00. Following the sale, the chief executive officer directly owned 1,432,393 shares of the company's stock, valued at $86,573,832.92. This represents a 14.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 301,456 shares of company stock worth $18,193,758 in the last three months. Insiders own 0.44% of the company's stock.

Institutional Investors Weigh In On Hewlett Packard Enterprise

A number of institutional investors and hedge funds have recently bought and sold shares of the company. CIBC Asset Management Inc lifted its stake 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 valued at $8,111,000 after acquiring an additional 126,938 shares during the period. Irenic Capital Management LP purchased a new position in shares of Hewlett Packard Enterprise during the 1st quarter valued at approximately $18,691,000. Assenagon Asset Management S.A. grew its position in Hewlett Packard Enterprise by 387.9% during the second quarter. Assenagon Asset Management S.A. now owns 1,240,000 shares of the technology company's stock valued at $55,936,000 after buying an additional 985,829 shares during the period. State of Wyoming purchased a new stake in shares of Hewlett Packard Enterprise during the 2nd quarter worth about $1,271,000. Finally, Sapient Capital LLC acquired a new position in Hewlett Packard Enterprise in the 2nd quarter worth about $987,000. 80.78% of the stock is owned by institutional investors.

Hewlett Packard Enterprise News Summary

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

• Positive Sentiment: HPE secured a $1.2 billion order from cloud provider Vultr for AMD Helios AI Rack systems to be deployed in U.S. data centers. The deal is HPE’s first order for AMD’s new rack-scale AI platform and strengthens its position in the rapidly expanding AI infrastructure market. HPE Secures Its First AMD Helios Order in $1.2 Billion Deal With Vultr
• Positive Sentiment: At its Networking Investor Day, HPE raised its long-term networking revenue outlook, citing AI-driven demand across data-center networking, routing, security and related markets. Management said demand continues to exceed supply, suggesting favorable growth and pricing conditions. HPE boosts networking growth outlook and gets AI order
• Positive Sentiment: Several firms raised their targets, including Citi to $92 with a buy rating, Barclays to $83 with an overweight rating, Morgan Stanley to $72 with an overweight rating and Truist to $75. These revisions indicate that some analysts see further upside from HPE’s AI and networking expansion.
• Neutral Sentiment: Analyst views remain divided after HPE’s substantial rally. UBS maintained a neutral rating with a $66 target, while Wells Fargo assigned an equal-weight rating and a $63 target. Commentary also notes that HPE’s valuation remains below many AI infrastructure peers, but the stock’s gains may already reflect considerable optimism. HPE Networking Outlook Gets Boost
• Neutral Sentiment: EVP Rami Rahim sold 34,456 shares worth approximately $2.1 million under a pre-arranged Rule 10b5-1 plan. Although the sale reduced his holdings by 3.79%, he still owns about 875,000 shares, making the transaction a limited bearish signal. SEC insider trading filing

Hewlett Packard Enterprise Company Profile

Hewlett Packard Enterprise Company NYSE: HPE is a global technology company that provides information technology products, services and solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and secure data center, cloud and edge-computing environments.

HPE's portfolio includes enterprise servers, high-performance computing systems, data storage, networking equipment, software and technology consulting services. The company also provides hybrid cloud and as-a-service solutions through HPE GreenLake, allowing customers to access and manage computing, storage, data protection and other IT capabilities through a flexible consumption model.

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