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Investing.com - Bernstein maintained its Market Perform rating on HP Enterprise (NYSE:HPE) with a price target of $24.00 on Thursday. The stock, currently trading at $25.04, sits near its 52-week high of $26.44, having delivered an impressive 70% return over the past six months.
The research firm described HPE’s overall guidance as "underwhelming," noting that the company’s fiscal year 2026 earnings per share (EPS) guidance of $2.20-2.40 fell below the consensus estimate of $2.41.
For fiscal year 2028, HPE provided EPS guidance of more than $3.00, which Bernstein indicated was roughly in line with consensus ($2.95) and the firm’s own estimate ($2.96).
Bernstein acknowledged that HPE’s projected $1 billion in cost savings from Juniper synergies and catalyst initiatives "appear promising" but characterized them as "largely a show-me story."
The research firm also highlighted HPE’s commitment to reduce net leverage from 3x to 2x Net Debt/EBITDA by fiscal year 2027, suggesting this indicates "limited capacity for shareholder returns in the near term."
In other recent news, Hewlett Packard Enterprise has provided its fiscal year 2026 earnings guidance, predicting adjusted earnings per share between $2.20 and $2.40, which falls short of the analyst consensus estimate of $2.41. This announcement was made during the company’s Securities Analyst Meeting, where HPE also outlined its strategic priorities and financial outlook through 2028. The company revealed plans to enhance its networking capabilities and focus on growth in AI infrastructure, particularly targeting enterprise and sovereign customer segments. Additionally, HPE announced a 10% increase in its annual dividend for fiscal year 2026 and authorized an additional $3 billion for share repurchases, totaling approximately $3.7 billion.
On the analyst front, KeyBanc maintained a Sector Weight rating on HP Enterprise, expressing a lukewarm response to the company’s long-term financial targets. Meanwhile, UBS reiterated its Neutral rating and maintained a $23 price target, anticipating the company’s fiscal year 2026 outlook. Goldman Sachs increased its price target for HPE from $25 to $27, expecting 5-7% revenue growth for fiscal 2026 based on a pro-forma fiscal 2025 revenue base of around $38 billion. These developments highlight the mixed analyst sentiment surrounding HP Enterprise’s future prospects.
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