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Investing.com - Goldman Sachs has reinstated coverage on HP (NYSE:HPQ) Enterprise (NYSE:HPE) with a Neutral rating and a price target of $22.00, following the company’s acquisition of Juniper Networks (NYSE:JNPR). According to InvestingPro data, HPE currently trades at $20.76, with analysts’ targets ranging from $16 to $30.
The technology company, now valued at $27.24 billion in market cap, completed its approximately $14 billion acquisition of networking company Juniper Networks on July 2, 2025, expanding its presence in both enterprise/campus and data center networking markets. The company has demonstrated solid financial performance with 11.79% revenue growth in the last twelve months.
Goldman Sachs believes HPE’s expanded networking portfolio positions the company well to maintain its second-place ranking in enterprise/campus networking while becoming a stronger competitor in the data center segment, especially amid a cyclical networking market recovery and growing demand for AI-networking. InvestingPro analysis reveals that 7 analysts have revised their earnings upward for the upcoming period, suggesting growing confidence in the company’s strategy.
Despite the positive outlook for HPE’s networking business, Goldman Sachs cited recent execution issues in the Server and Hybrid Cloud segments as reasons for maintaining a Neutral stance on the stock.
The investment bank forecasts HPE’s earnings per share at $1.80 for fiscal 2025, $2.23 for fiscal 2026, and $2.42 for fiscal 2027, with the current price-to-earnings ratio of 10x suggesting the stock is fairly valued compared to server and networking peers.
In other recent news, Hewlett Packard Enterprise (HPE) announced the appointment of Robert Calderoni to its board of directors, effective July 16, 2025, as part of a cooperation agreement with activist investor Elliott Investment Management. Calderoni will also chair a newly formed Strategy Committee aimed at identifying opportunities for value creation. Additionally, HPE has completed its acquisition of Juniper Networks, prompting S&P Global Ratings to revise Juniper’s outlook to stable from negative. The acquisition is expected to generate significant cost synergies, with HPE increasing its expected savings from $450 million to $600 million. BofA Securities has raised its price target for HPE to $24, citing these increased synergy expectations. Meanwhile, UBS has reiterated a Neutral rating on HPE, maintaining a price target of $18, following discussions on the integration strategy for the Juniper acquisition. These developments highlight HPE’s ongoing strategic initiatives and collaborations aimed at enhancing its business operations.
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