Bank of America Securities analyst Wamsi Mohan reiterated a Buy rating on Hewlett Packard Enterprise (HPE – Research Report) yesterday and set a price target of $20.00.
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Wamsi Mohan’s rating is based on several positive indicators for Hewlett Packard Enterprise (HPE). The company reported strong second-quarter results, surpassing expectations in both revenue and earnings per share (EPS). Additionally, the guidance for the third quarter’s revenue was notably higher than consensus estimates, primarily due to a significant AI server deal. This reflects a positive revenue momentum, which is a key factor in the Buy rating.
Furthermore, HPE’s adjustments to its fiscal 2025 revenue and EPS guidance demonstrate a strategic response to market conditions, including a better outlook on tariffs and operational efficiencies. The increase in AI systems orders and backlog also highlights the company’s growth potential in this sector. Despite some anticipated challenges in the fourth quarter, the overall trajectory and strategic initiatives, such as cost-cutting measures, support a positive outlook for HPE, justifying the Buy recommendation.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $24.00 price target.
HPE’s price has also changed moderately for the past six months – from $21.300 to $17.690, which is a -16.95% drop .