Argus upgrades HP Enterprise to Buy on growing opportunity in AI space

Argus upgraded HP Enterprise to Buy from Hold with a $26 price target after its Q2 earnings beat and “positive guidance”. The firm is citing the company’s strong positioning and growing opportunity in the AI space as it is generating revenue from AI servers, and its overall compute business is now showing signs of recovery, the analyst tells investors in a research note. HP Enterprise continues to anticipate a low double-digit year over year decline in FY24 earnings, but the management also expects to grow revenue, and the company looks well positioned for sales and profit growth ahead.