Hewlett Packard Enterprise (NYSE:HPE) Price Target Raised to $70.00 at Citigroup

Key Points

• Citigroup raised its price target on Hewlett Packard Enterprise from $39 to $70 and kept a buy rating, implying meaningful upside from the prior close.
• HPE’s stock jumped 26.4% to $54.39 after the company reported a strong quarter, with EPS of $0.79 and revenue of $10.68 billion, both well above estimates.
• The company also raised full-year and Q3 guidance and said surging AI compute demand is accelerating progress, prompting management to pull forward its long-term financial targets by two years.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) had its target price hoisted by equities researchers at Citigroup from $39.00 to $70.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the technology company's stock. Citigroup's target price indicates a potential upside of 28.69% from the company's previous close.

A number of other research firms also recently commented on HPE. UBS Group increased 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. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Hewlett Packard Enterprise in a research report on Wednesday, March 25th. Bank of America increased their price target on shares of Hewlett Packard Enterprise from $38.00 to $80.00 and gave the stock a "buy" rating in a research note on Tuesday. Wall Street Zen cut shares of Hewlett Packard Enterprise from a "buy" rating to a "hold" rating in a research note on Tuesday. Finally, Wells Fargo & Company increased their price target on shares of Hewlett Packard Enterprise from $26.00 to $67.00 and gave the stock an "equal weight" rating in a research note on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat.com, Hewlett Packard Enterprise has a consensus rating of "Moderate Buy" and an average target price of $54.94.

Hewlett Packard Enterprise Trading Up 26.4%

NYSE:HPE traded up $11.35 on Tuesday, hitting $54.39. The stock had a trading volume of 106,917,826 shares, compared to its average volume of 19,915,974. 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 stock has a market cap of $72.17 billion, a price-to-earnings ratio of -249.32, a PEG ratio of 1.10 and a beta of 1.28. The company has a fifty day moving average price of $29.23 and a two-hundred day moving average price of $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 earnings results on Monday, June 1st. The technology company reported $0.79 earnings per share for the quarter, beating the consensus estimate of $0.54 by $0.25. The company 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%. Hewlett Packard Enterprise's revenue was up 40.0% on a year-over-year basis. During the same period in the previous 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. Equities research analysts expect that Hewlett Packard Enterprise will post 1.97 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Hewlett Packard Enterprise news, EVP Fidelma Russo sold 17,001 shares of Hewlett Packard Enterprise stock in a transaction that occurred on Tuesday, April 21st. The shares were sold at an average price of $27.97, for a total transaction of $475,517.97. 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. Also, EVP Neil B. Macdonald sold 24,251 shares of Hewlett Packard Enterprise stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $27.01, for a total transaction of $655,019.51. Following the transaction, the executive vice president directly owned 32,243 shares in the company, valued at approximately $870,883.43. This trade represents a 42.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 702,402 shares of company stock valued at $18,440,171. 0.44% of the stock is currently owned by corporate insiders.

Institutional Trading of Hewlett Packard Enterprise

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Headlands Technologies LLC bought a new stake in Hewlett Packard Enterprise during the second quarter valued at $26,000. SJS Investment Consulting Inc. grew its position in shares of Hewlett Packard Enterprise by 159.5% during the first quarter. SJS Investment Consulting Inc. now owns 1,165 shares of the technology company's stock worth $28,000 after acquiring an additional 716 shares during the last quarter. Union Savings Bank bought a new position in shares of Hewlett Packard Enterprise during the fourth quarter worth about $30,000. Reflection Asset Management bought a new position in shares of Hewlett Packard Enterprise during the fourth quarter worth about $31,000. Finally, Clearstead Trust LLC grew its position in shares of Hewlett Packard Enterprise by 93.8% during the third quarter. Clearstead Trust LLC now owns 1,291 shares of the technology company's stock worth $32,000 after acquiring an additional 625 shares during the last quarter. Institutional investors own 80.78% of the company's stock.

Hewlett Packard Enterprise News Roundup

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

• Positive Sentiment: HPE reported fiscal Q2 revenue of $10.68 billion and EPS of $0.79, both well above Wall Street estimates, marking a major earnings beat and signaling stronger operating momentum. HPE Reports Fiscal 2026 Second Quarter Results
• Positive Sentiment: The company raised full-year FY2026 guidance to $3.35-$3.45 in EPS and $44.2 billion-$45.6 billion in revenue, and also lifted Q3 guidance, reinforcing confidence in future growth. HPE expects to achieve 2028 financial targets this year after record quarter on AI boom
• Positive Sentiment: Management said surging AI compute demand is accelerating long-term progress, and HPE pulled forward its long-term financial targets by two years, a sign that the AI buildout is translating into faster-than-expected results. HPE Pulls Forward Long-Term Targets as Surging AI Compute Demand Boosts Revenue
• Positive Sentiment: Several analysts turned more constructive after the report, with JPMorgan, Raymond James, Bank of America, and Loop Capital raising targets or upgrading the stock, which can help support further investor sentiment. Analyst target raises via Benzinga
• Neutral Sentiment: HPE also announced a quarterly dividend of $0.1425 per share, a routine capital-return update that is not likely the main driver of the stock move. HPE Reports Fiscal 2026 Second Quarter Results

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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