Hewlett Packard Enterprise (NYSE:HPE) Price Target Raised to $65.00

Key Points

• UBS Group sharply raised its price target on Hewlett Packard Enterprise from $25 to $65 while keeping a neutral rating, implying about 11.4% upside from the prior close.
• HPE posted better-than-expected fiscal Q2 results, with EPS of $0.79 and revenue of $10.68 billion, both topping Wall Street estimates and up 40% year over year.
• The company lifted guidance for fiscal 2026 and advanced its long-term financial targets, reflecting management’s confidence in continued momentum from AI servers and networking demand.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) had its price objective lifted by Susquehanna from $21.00 to $65.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm currently has a "neutral" rating on the technology company's stock. Susquehanna's price objective would suggest a potential upside of 9.72% from the company's current price.

A number of other brokerages have also weighed in on HPE. Bank of America raised their target price on shares of Hewlett Packard Enterprise from $38.00 to $80.00 and gave the company a "buy" rating in a research report on Tuesday. Citigroup raised their target price on shares of Hewlett Packard Enterprise from $27.00 to $39.00 and gave the company a "buy" rating in a research report on Thursday, May 14th. Truist Financial assumed coverage on shares of Hewlett Packard Enterprise in a research report on Tuesday, March 31st. They issued a "buy" rating and a $31.00 target price on the stock. Raymond James Financial raised their target price on shares of Hewlett Packard Enterprise from $29.00 to $74.00 and gave the company an "outperform" rating in a research report on Tuesday. Finally, UBS Group raised their target price on shares of Hewlett Packard Enterprise from $25.00 to $65.00 and gave the company a "neutral" rating in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $46.29.

Hewlett Packard Enterprise Price Performance

Shares of NYSE HPE traded up $16.20 during trading hours on Tuesday, hitting $59.24. 106,917,826 shares of the stock were exchanged, compared to its average volume of 19,915,974. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.75 and a current ratio of 1.03. The company has a market cap of $78.61 billion, a PE ratio of -249.32, a price-to-earnings-growth ratio of 1.10 and a beta of 1.28. The company's fifty day simple moving average is $29.23 and its two-hundred day simple moving average is $24.80. Hewlett Packard Enterprise has a 1-year low of $17.02 and a 1-year high of $47.97.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last posted its quarterly earnings results on Monday, June 1st. The technology company reported $0.79 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.54 by $0.25. The business had revenue of $10.68 billion for the quarter, compared to analyst estimates of $9.78 billion. Hewlett Packard Enterprise had a negative net margin of 0.41% and a positive return on equity of 9.93%. The firm's revenue for the quarter was up 40.0% on a year-over-year basis. During the same quarter last year, the business posted ($0.82) EPS. 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 predict that Hewlett Packard Enterprise will post 1.97 EPS for the current year.

Insider Activity at Hewlett Packard Enterprise

In related news, CFO Marie Myers sold 93,583 shares of Hewlett Packard Enterprise stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $30.01, for a total transaction of $2,808,425.83. Following the completion of the transaction, the chief financial officer owned 204,754 shares of the company's stock, valued at $6,144,667.54. This trade represents a 31.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 6,482 shares of Hewlett Packard Enterprise stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $29.10, for a total transaction of $188,626.20. Following the completion of the sale, the director directly owned 8,018 shares of the company's stock, valued at approximately $233,323.80. This trade represents a 44.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 702,402 shares of company stock valued at $18,440,171 in the last quarter. Insiders own 0.44% of the company's stock.

Institutional Investors Weigh In On Hewlett Packard Enterprise

Several hedge funds and other institutional investors have recently bought and sold shares of HPE. Vanguard Group Inc. grew its position in Hewlett Packard Enterprise by 1.1% in the 4th quarter. Vanguard Group Inc. now owns 173,058,714 shares of the technology company's stock worth $4,156,870,000 after purchasing an additional 1,917,719 shares in the last quarter. Capital World Investors bought a new stake in Hewlett Packard Enterprise in the 4th quarter worth about $901,751,000. Geode Capital Management LLC grew its position in Hewlett Packard Enterprise by 1.3% in the 4th 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 in the last quarter. Elliott Investment Management L.P. grew its position in Hewlett Packard Enterprise by 47.2% in the 1st quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company's stock worth $652,912,000 after purchasing an additional 8,790,757 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC bought a new stake in Hewlett Packard Enterprise in the 4th quarter worth about $433,537,000. 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 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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