Loop Capital raised the firm’s price target on HP Enterprise (HPE) to $18 from $16 and keeps a Hold rating on the shares after its Q2 earnings beat. The company saw robust Server revenue of $4.1B, up 7% y/y, and is now shipping Gen12 servers and feels strongly about their adoption, the analyst tells investors in a research note. HP has also addressed the pricing, discounting and inventory challenges that impacted server operating margin in Q1 and now expects server margins to exit FY25 at 10% operating margin from the current 5.9%, Loop added.
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