Analyst Amit Daryanani of Evercore ISI maintained a Buy rating on Hewlett Packard Enterprise, retaining the price target of $28.00.
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Amit Daryanani has given his Buy rating due to a combination of factors that highlight Hewlett Packard Enterprise’s potential for growth despite recent revenue challenges. The company’s recent earnings report showed a significant year-over-year increase in non-GAAP EPS, surpassing consensus expectations, which indicates strong profitability. Additionally, while there were declines in certain segments like Servers and Hybrid Cloud, the Networking segment demonstrated remarkable growth, which is a positive indicator of HPE’s strategic positioning.
Amit Daryanani also noted that HPE’s gross margins have improved significantly, driven by a favorable product mix and robust performance in networking. Although the company faced some revenue shortfalls, particularly in server and storage sales, the long-term outlook remains positive as HPE raised its EPS target and maintained its FY26 revenue guidance. The focus on integrating Juniper and the strength in networking suggest that HPE is well-positioned to exceed its current guidance, supporting the Buy recommendation.
In another report released on December 9, Argus Research also reiterated a Buy rating on the stock with a $30.00 price target.
HPE’s price has also changed moderately for the past six months – from $18.340 to $25.260, which is a 37.73% increase.