In a report released yesterday, Asiya Merchant from Citi maintained a Buy rating on Hewlett Packard Enterprise, with a price target of $28.00.
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Asiya Merchant has given her Buy rating due to a combination of factors that suggest a positive outlook for Hewlett Packard Enterprise (HPE). The anticipated increase in long-term revenue growth targets, driven by the Juniper acquisition and sustained demand across various segments, plays a significant role in this assessment. Additionally, the AI business’s strong performance, with a substantial backlog, further supports the optimistic forecast.
Another critical factor influencing the Buy rating is the expected improvement in operating income from the higher-margin networking segment, which is projected to enhance earnings per share growth targets. The potential for cost synergies from the Juniper acquisition, alongside margin expansion and free cash flow leverage, also contributes to the favorable evaluation. These elements, combined with a raised price target, underscore the constructive stance on HPE’s future performance.
In another report released on September 29, J.P. Morgan also reiterated a Buy rating on the stock with a $30.00 price target.