Citi analyst Asiya Merchant has maintained their bullish stance on HPE stock, giving a Buy rating today.
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Asiya Merchant has given his Buy rating due to a combination of factors that highlight both resilient demand and improving financial performance at Hewlett Packard Enterprise. Management continues to see solid order momentum across key areas such as networking, servers, and storage, with orders outpacing reported revenue and customers largely accepting higher prices amid constrained supply.
Stronger than anticipated cash generation and better working capital in the first quarter allowed HPE to raise its full‑year EPS outlook, reinforcing confidence in earnings growth. In addition, a sizeable and growing AI and cloud backlog, the ramp of AI server revenue in the second half, and disciplined execution on Juniper cost synergies support expectations for margin expansion and an attractive projected total return of roughly 19%.
In another report released today, Barclays also maintained a Buy rating on the stock with a $28.00 price target.