Loop Capital Upgrades Hewlett Packard Enterprise (NYSE:HPE) to Buy

Key Points

• Loop Capital upgraded Hewlett Packard Enterprise from hold to buy and set a $75 price target, implying about 58% upside from the prior close.
• HPE’s latest earnings beat expectations, with Q2 EPS of $0.79 and revenue of $10.68 billion versus estimates of $0.54 and $9.78 billion, respectively. Revenue also jumped 40% year over year, driven by strong networking and AI-related demand.
• The company raised its FY2026 guidance and pulled forward long-term financial targets, signaling confidence that momentum in AI servers and networking will continue. Management also introduced new NVIDIA-based server hardware aimed at agentic AI workloads.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) was upgraded by equities researchers at Loop Capital from a "hold" rating to a "buy" rating in a research report issued on Tuesday. The brokerage currently has a $75.00 target price on the technology company's stock. Loop Capital's target price would indicate a potential upside of 58.32% from the company's previous close.

HPE has been the topic of several other research reports. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Hewlett Packard Enterprise in a research report on Wednesday, March 25th. Morgan Stanley lifted their price target on Hewlett Packard Enterprise from $25.00 to $33.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 21st. Bank of America lifted their price target on Hewlett Packard Enterprise from $29.00 to $32.00 and gave the stock a "buy" rating in a research report on Tuesday, March 10th. Truist Financial started coverage on Hewlett Packard Enterprise in a research report on Tuesday, March 31st. They set a "buy" rating and a $31.00 price target on the stock. Finally, Wall Street Zen downgraded Hewlett Packard Enterprise from a "buy" rating to a "hold" rating in a research note on Tuesday. 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 data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $31.24.

Hewlett Packard Enterprise Price Performance

Shares of NYSE HPE opened at $47.37 on Tuesday. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.75 and a current ratio of 1.03. Hewlett Packard Enterprise has a fifty-two week low of $17.02 and a fifty-two week high of $47.97. The firm has a market capitalization of $62.85 billion, a PE ratio of -249.32, a price-to-earnings-growth ratio of 1.10 and a beta of 1.28. The stock's 50-day simple moving average is $29.23 and its 200-day simple moving average is $24.80.

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

Insider Transactions at Hewlett Packard Enterprise

In other Hewlett Packard Enterprise news, CFO Marie Myers sold 93,583 shares of the business's stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $30.01, for a total transaction of $2,808,425.83. Following the sale, the chief financial officer directly owned 204,754 shares in the company, valued at approximately $6,144,667.54. The trade was a 31.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 6,482 shares of the business's stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $29.10, for a total value of $188,626.20. Following the sale, the director owned 8,018 shares in the company, valued at approximately $233,323.80. The trade was 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. Over the last three months, insiders have sold 702,402 shares of company stock valued at $18,440,171. 0.44% of the stock is owned by company insiders.

Institutional Trading of Hewlett Packard Enterprise

A number of institutional investors have recently bought and sold shares of the company. SJS Investment Consulting Inc. raised 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 worth $28,000 after acquiring an additional 716 shares during the last quarter. Headlands Technologies LLC acquired a new position in shares of Hewlett Packard Enterprise in the second quarter worth $26,000. Union Savings Bank acquired a new position in shares of Hewlett Packard Enterprise in the fourth quarter worth $30,000. Reflection Asset Management acquired a new position in shares of Hewlett Packard Enterprise in the fourth quarter worth $31,000. Finally, Clearstead Trust LLC raised its holdings in shares of Hewlett Packard Enterprise by 93.8% in 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. 80.78% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Hewlett Packard Enterprise

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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