Piper Sandler Reiterates Neutral Rating for Hewlett Packard Enterprise (NYSE:HPE)

Key Points

• Piper Sandler reaffirmed its “neutral” rating on HPE but lowered its price target to $57 from $63, implying approximately 13.5% upside from the prior close.
• HPE reported stronger-than-expected quarterly results, with revenue of $12.21 billion, EPS of $1.11, and 33.7% year-over-year revenue growth. The company also set fiscal 2026 EPS guidance at $3.75–$3.85.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and $68.69 target, though supply constraints and questions about the durability of AI-related margin gains remain risks.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report)'s stock had its "neutral" rating reissued by stock analysts at Piper Sandler in a research note issued on Thursday, Benzinga reports. They presently have a $57.00 price target on the technology company's stock, down from their prior price target of $63.00. Piper Sandler's target price suggests a potential upside of 13.47% from the stock's previous close.

Several other research analysts also recently issued reports on the company. Weiss Ratings raised Hewlett Packard Enterprise from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, June 29th. Zacks Research downgraded Hewlett Packard Enterprise from a "strong-buy" rating to a "hold" rating in a report on Monday, August 3rd. Barclays lifted their target price on shares of Hewlett Packard Enterprise from $67.00 to $79.00 and gave the company an "overweight" rating in a report on Thursday. Bank of America increased their price objective on shares of Hewlett Packard Enterprise from $80.00 to $82.00 and gave the company a "buy" rating in a research report on Monday. Finally, Susquehanna lifted their price target on shares of Hewlett Packard Enterprise from $21.00 to $65.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 2nd. Twelve equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, Hewlett Packard Enterprise currently has a consensus rating of "Moderate Buy" and a consensus target price of $68.69.

Hewlett Packard Enterprise Stock Down 3.1%

HPE stock traded down $1.59 on Thursday, hitting $50.23. 33,100,236 shares of the company's stock were exchanged, compared to its average volume of 20,856,213. The firm has a 50 day moving average price of $49.63 and a two-hundred day moving average price of $37.46. Hewlett Packard Enterprise has a 12-month low of $19.84 and a 12-month high of $64.25. The stock has a market cap of $66.52 billion, a P/E ratio of 46.77, a price-to-earnings-growth ratio of 0.54 and a beta of 1.43. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.75 and a current ratio of 1.09.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, topping analysts' consensus estimates of $0.93 by $0.18. The company had revenue of $12.21 billion during the quarter, compared to analysts' expectations of $11.97 billion. Hewlett Packard Enterprise had a return on equity of 11.91% and a net margin of 3.94%.The firm's revenue was up 33.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.44 EPS. 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 expect that Hewlett Packard Enterprise will post 2.92 EPS for the current fiscal year.

Insider Activity at Hewlett Packard Enterprise

In other news, SVP Kirt P. Karros sold 18,785 shares of the firm's stock in a transaction on Monday, June 22nd. The shares were 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 SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.44% of the stock is currently owned by corporate insiders.

Institutional Trading of Hewlett Packard Enterprise

Large investors have recently made changes to their positions in the business. Headlands Technologies LLC bought a new stake in Hewlett Packard Enterprise in the 2nd quarter valued at $26,000. Delos Wealth Advisors LLC acquired a new position in Hewlett Packard Enterprise during the second quarter worth approximately $27,000. SJS Investment Consulting Inc. raised its stake in Hewlett Packard Enterprise by 159.5% in the 1st quarter. SJS Investment Consulting Inc. now owns 1,165 shares of the technology company's stock valued at $28,000 after acquiring an additional 716 shares during the period. Union Savings Bank bought a new position in shares of Hewlett Packard Enterprise in the fourth quarter valued at about $30,000. Finally, First Bancorp Inc ME acquired a new stake in Hewlett Packard Enterprise during the second quarter worth approximately $30,000. Institutional investors own 80.78% of the company's stock.

Trending Headlines about Hewlett Packard Enterprise

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

• Positive Sentiment: AI demand is driving strong growth. HPE reported record fiscal Q3 revenue of approximately $12.2 billion, up 34% year over year, while non-GAAP EPS of $1.11 rose 152% and exceeded consensus estimates near $0.95. Server and networking demand tied to enterprise and “agentic” AI contributed to record orders and backlog. HPE Q3 Earnings Surpass Expectations, Revenues Rise Y/Y
• Positive Sentiment: Management raised its outlook. HPE lifted fiscal 2026 EPS guidance to $3.75-$3.85, above the roughly $3.34 consensus, and forecast revenue of $46-$47 billion. It also projects at least $3.75 billion in fiscal 2026 free cash flow and expects fiscal 2027 revenue growth of 13%-17%. HPE raises FY27 outlook on agentic AI demand, reports record orders
• Positive Sentiment: Several analysts remain bullish. Citigroup raised its price target to $76, Truist to $70 and Barclays to $79; all maintain “buy” or “overweight” ratings. These targets imply substantial potential upside if AI-driven growth and profitability continue.
• Neutral Sentiment: HPE expanded its collaboration with Oracle to deploy HPE Juniper Networking in Oracle AI data centers, reinforcing its positioning in large-scale AI infrastructure. The company will also host a Networking Investor Day on September 30.
• Neutral Sentiment: HPE declared a quarterly dividend of $0.1425 per share, payable October 16 to shareholders of record September 17. The annualized yield is approximately 1.1%.
• Negative Sentiment: Supply constraints are overshadowing the results. Networking orders reportedly exceed available supply, raising concerns that shortages could delay revenue recognition and limit HPE’s ability to capitalize fully on AI demand. HPE Earnings Soar but Supply Constraints Aren't Going Away
• Negative Sentiment: Investors questioned margin durability. As AI systems become a larger portion of the product mix, the market is evaluating whether recent margin expansion can persist amid component shortages and potentially intense competition. UBS cut its target to $59 with a “neutral” rating, while Wells Fargo reduced its target to $54 and assigned “equal weight.” Why is HPE stock falling despite stronger-than-expected results, raised guidance?

Hewlett Packard Enterprise Company Profile

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.

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