Bank of America Forecasts Strong Price Appreciation for Hewlett Packard Enterprise (NYSE:HPE) Stock

Key Points

• Bank of America raised its price target on Hewlett Packard Enterprise from $38 to $80 and kept a buy rating, implying nearly 69% upside from the current price.
• HPE reported strong fiscal Q2 results, with EPS of $0.79 and revenue of $10.68 billion, both beating Wall Street expectations. Revenue surged 40% year over year, led by a 148% jump in networking revenue.
• The company raised fiscal 2026 guidance and pulled forward its long-term targets by two years, signaling confidence that demand tied to AI servers and infrastructure will remain strong. HPE also introduced a new NVIDIA Vera CPU-based server for agentic AI workloads.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) had its price target increased by equities research analysts at Bank of America from $38.00 to $80.00 in a research report issued on Tuesday,Benzinga reports. The firm currently has a "buy" rating on the technology company's stock. Bank of America's price objective suggests a potential upside of 68.88% from the stock's current price.

Several other equities analysts have also recently issued reports on HPE. Raymond James Financial reiterated an "outperform" rating and set a $29.00 price target (down from $30.00) on shares of Hewlett Packard Enterprise in a research report on Monday, April 13th. Citigroup upped their price objective on Hewlett Packard Enterprise from $27.00 to $39.00 and gave the company a "buy" rating in a report on Thursday, May 14th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Hewlett Packard Enterprise in a research note on Wednesday, March 25th. Wall Street Zen cut shares of Hewlett Packard Enterprise from a "buy" rating to a "hold" rating in a research report on Tuesday. Finally, Truist Financial initiated coverage on shares of Hewlett Packard Enterprise in a report on Tuesday, March 31st. They issued a "buy" rating and a $31.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat, Hewlett Packard Enterprise currently has an average rating of "Moderate Buy" and an average price target of $34.06.

Hewlett Packard Enterprise Stock Performance

Shares of HPE opened at $47.37 on Tuesday. The firm has a market capitalization of $62.85 billion, a PE ratio of -249.32, a P/E/G ratio of 1.10 and a beta of 1.28. The company has a quick ratio of 0.75, a current ratio of 1.03 and a debt-to-equity ratio of 0.71. The firm has a 50-day moving average price of $29.23 and a 200 day moving average price of $24.80. Hewlett Packard Enterprise has a 52-week low of $17.02 and a 52-week high of $47.97.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last issued its quarterly earnings results on Monday, June 1st. The technology company reported $0.79 earnings per share for the quarter, topping analysts' consensus estimates of $0.54 by $0.25. Hewlett Packard Enterprise had a negative net margin of 0.41% and a positive return on equity of 9.93%. The company had revenue of $10.68 billion during the quarter, compared to analyst estimates of $9.78 billion. During the same period in the prior year, the business posted ($0.82) EPS. The business's revenue for the quarter was up 40.0% compared to the same quarter last year. Hewlett Packard Enterprise has set its FY 2026 guidance at 3.350-3.450 EPS and its Q3 2026 guidance at 0.880-0.930 EPS. On average, sell-side analysts anticipate that Hewlett Packard Enterprise will post 1.97 earnings per share for the current fiscal year.

Insider Activity at Hewlett Packard Enterprise

In other news, CFO Marie Myers sold 93,583 shares of the stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $30.01, for a total value of $2,808,425.83. Following the completion of the sale, the chief financial officer directly owned 204,754 shares of the company's stock, valued at approximately $6,144,667.54. This represents a 31.37% decrease in their ownership of the stock. The transaction was disclosed in a legal 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. Also, CEO Antonio F. Neri sold 264,432 shares of Hewlett Packard Enterprise stock in a transaction dated Wednesday, March 25th. The stock was sold at an average price of $25.18, for a total value of $6,658,397.76. Following the sale, the chief executive officer directly owned 1,837,329 shares in the company, valued at approximately $46,263,944.22. This trade represents a 12.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 702,402 shares of company stock valued at $18,440,171. Insiders own 0.44% of the company's stock.

Institutional Trading of Hewlett Packard Enterprise

Large investors have recently bought and sold shares of the stock. SJS Investment Consulting Inc. increased its holdings in shares of Hewlett Packard Enterprise by 159.5% in the first quarter. SJS Investment Consulting Inc. now owns 1,165 shares of the technology company's stock valued at $28,000 after purchasing an additional 716 shares in the last quarter. Headlands Technologies LLC acquired a new position in Hewlett Packard Enterprise in the second quarter valued at about $26,000. Union Savings Bank acquired a new position in shares of Hewlett Packard Enterprise in the 4th quarter valued at approximately $30,000. Reflection Asset Management bought a new stake in shares of Hewlett Packard Enterprise during the fourth quarter worth $31,000. Finally, Clearstead Trust LLC raised its stake in shares of Hewlett Packard Enterprise by 93.8% in the 3rd quarter. Clearstead Trust LLC now owns 1,291 shares of the technology company's stock valued at $32,000 after purchasing an additional 625 shares during the period. 80.78% of the stock is currently owned by institutional investors.

Hewlett Packard Enterprise News Roundup

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

• Positive Sentiment: HPE reported fiscal Q2 EPS of $0.79 and revenue of $10.68 billion, both well above Wall Street expectations, showing stronger-than-expected demand across the business.
• Positive Sentiment: The company said revenue grew 40% year over year, while networking revenue jumped 148%, highlighting broad-based strength in AI-related and enterprise infrastructure spending.
• Positive Sentiment: HPE raised its fiscal 2026 guidance and pulled forward its long-term financial targets by two years, signaling management sees the AI server and networking boom continuing. Reuters: HPE expects to achieve 2028 financial targets this year after record quarter on AI boom
• Positive Sentiment: HPE also introduced a new NVIDIA Vera CPU-based server for agentic AI workloads, reinforcing its positioning in the fast-growing AI infrastructure market. BusinessWire: HPE Introduces CPU Server with NVIDIA Vera CPU, Purpose-built for Agentic AI
• Neutral Sentiment: HPE announced a quarterly dividend of $0.1425 per share, payable July 15 to shareholders of record on June 16, which may support income-focused investors but is not the main driver of the move.
• Negative Sentiment: After the earnings-driven surge, some of the stock’s AI enthusiasm may already be reflected in the share price, which could create valuation risk if growth or margins cool from here.

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.

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