Morgan Stanley downgraded HP Enterprise (HPE) to Equal Weight from Overweight with a price target of $25, down from $28. The firm believes the memory “supercycle” brings downside risk to hardware manufacturer earnings heading into 2026. The cycle is driving inflated input costs amid “tepid” non-artificial intelligence hardware demand trends, the analyst tells investors in a research note. Morgan Stanley downgraded a number of global hardware names, saying lower gross margins will lead to negative earnings revisions and multiple compression.
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