Wells Fargo & Company Lowers Hewlett Packard Enterprise (NYSE:HPE) Price Target to $54.00

Key Points

• Wells Fargo cut HPE’s price target from $67 to $54 while maintaining an “equal weight” rating, implying roughly 12% upside from the stock’s $48.08 price.
• Despite the downgrade, HPE reported strong quarterly results, with revenue rising 33.7% year over year to $12.21 billion and EPS of $1.11 beating estimates; it also raised fiscal 2026 guidance.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus rating and an average price target of $69.25, although supply constraints and the sustainability of AI-driven margins remain concerns.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) had its target price reduced by equities researchers at Wells Fargo & Company from $67.00 to $54.00 in a research report issued on Thursday, Benzinga reports. The brokerage currently has an "equal weight" rating on the technology company's stock. Wells Fargo & Company's target price indicates a potential upside of 12.32% from the company's current price.

HPE has been the subject of a number of other research reports. Loop Capital raised shares of Hewlett Packard Enterprise from a "hold" rating to a "buy" rating and boosted their price target for the stock from $23.00 to $75.00 in a research note on Tuesday, June 2nd. Morgan Stanley upgraded shares of Hewlett Packard Enterprise from an "equal weight" rating to an "overweight" rating and cut their target price for the stock from $71.00 to $69.00 in a research report on Monday, August 10th. Barclays lifted their price target on Hewlett Packard Enterprise from $67.00 to $79.00 and gave the stock an "overweight" rating in a research note on Thursday. UBS Group raised their price objective on Hewlett Packard Enterprise from $25.00 to $65.00 and gave the company a "neutral" rating in a report on Tuesday, June 2nd. Finally, Sanford C. Bernstein increased their price target on shares of Hewlett Packard Enterprise from $35.00 to $62.00 and gave the company a "market perform" rating in a research report on Tuesday, June 2nd. Twelve analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, Hewlett Packard Enterprise presently has an average rating of "Moderate Buy" and an average price target of $69.25.

Hewlett Packard Enterprise Price Performance

NYSE HPE traded down $3.75 during trading on Thursday, reaching $48.08. The company's stock had a trading volume of 16,910,477 shares, compared to its average volume of 20,743,398. The stock has a market capitalization of $63.66 billion, a PE ratio of 45.06, a P/E/G ratio of 0.54 and a beta of 1.43. 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 firm has a fifty day moving average of $49.63 and a 200 day moving average of $37.46. Hewlett Packard Enterprise has a one year low of $19.84 and a one year high of $64.25.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $12.21 billion during the quarter, compared to the consensus estimate of $11.97 billion. During the same quarter last year, the company posted $0.44 EPS. The company's revenue for the quarter 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. Analysts expect that Hewlett Packard Enterprise will post 2.92 EPS for the current fiscal year.

Insider Buying and Selling

In other Hewlett Packard Enterprise news, SVP Kirt P. Karros sold 18,785 shares of Hewlett Packard Enterprise stock in a transaction that occurred 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 legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.44% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. California State Teachers Retirement System grew its holdings in Hewlett Packard Enterprise by 4,299.0% in the 2nd quarter. California State Teachers Retirement System now owns 92,484,612 shares of the technology company's stock worth $4,171,981,000 after acquiring an additional 90,382,225 shares during the last quarter. Capital World Investors purchased a new stake in shares of Hewlett Packard Enterprise during the fourth quarter worth about $901,751,000. Geode Capital Management LLC grew its stake in shares of Hewlett Packard Enterprise by 1.3% in the fourth quarter. Geode Capital Management LLC now owns 34,869,143 shares of the technology company's stock worth $835,626,000 after purchasing an additional 431,728 shares during the last quarter. Elliott Investment Management L.P. increased its holdings in Hewlett Packard Enterprise by 47.2% during the 1st quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company's stock valued at $652,912,000 after purchasing an additional 8,790,757 shares during the period. Finally, Barrow Hanley Mewhinney & Strauss LLC purchased a new position in Hewlett Packard Enterprise during the 2nd quarter valued at about $1,027,139,000. 80.78% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Hewlett Packard Enterprise

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

• Positive Sentiment: Results and guidance beat expectations: HPE reported fiscal Q3 revenue of $12.21 billion, up 33.7% year over year, and adjusted EPS of $1.11 versus the roughly $0.93 consensus. The company raised fiscal 2026 EPS guidance to $3.75-$3.85 and revenue guidance to $46-$47 billion, both above analyst estimates. Q4 guidance also exceeded expectations. HPE Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: AI demand is driving growth: Strong demand for AI infrastructure lifted server and networking sales, helping produce record revenue, orders and profitability. HPE also outlined potential fiscal 2027 revenue growth of 13%-17% and at least $5 billion in free cash flow. HPE raises annual forecasts as AI and networking demand lifts revenue
• Positive Sentiment: Oracle networking collaboration expanded: HPE will deploy Juniper Networking technology across Oracle’s AI data centers, potentially strengthening its position in large-scale AI infrastructure and creating additional networking demand. HPE and Oracle deepen networking collaboration
• Neutral Sentiment: Networking Investor Day scheduled: HPE will hold an investor event on September 30 to discuss the Networking segment’s strategy, portfolio differentiation and growth opportunities. The event could provide further detail on the Juniper integration and AI-related demand. HPE to webcast Networking Investor Day event
• Negative Sentiment: Supply constraints remain a concern: Investors appear worried that limited availability of components and systems could restrict HPE’s ability to fulfill AI-related orders. Shares declined despite the earnings beat and raised outlook. Why is HPE stock falling despite stronger results?
• Negative Sentiment: Margin sustainability is under scrutiny: As AI systems become a larger portion of sales, investors are assessing whether HPE can maintain recent margin gains and convert strong demand into durable, profitable growth.

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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