HP Enterprise stock price target raised to $27 from $25 at Goldman Sachs

Investing.com - Goldman Sachs raised its price target on HP Enterprise (NYSE:HPE) to $27.00 from $25.00 while maintaining a Neutral rating ahead of the company’s upcoming Security Analyst Meeting. The stock, currently trading at $24.93, has shown remarkable strength with a 56.61% return over the past six months and is trading near its 52-week high of $25.36. According to InvestingPro data, analyst targets for HPE range from $21 to $30.

The firm expects HPE to provide fiscal 2026 guidance for 5-7% revenue growth based on a pro-forma fiscal 2025 revenue base of approximately $38 billion, along with earnings per share guidance of $2.30-$2.40. This growth trajectory builds upon HPE’s strong performance, with revenue growing nearly 14% over the last twelve months. For deeper insights into HPE’s growth metrics and financial health, InvestingPro subscribers have access to exclusive analysis and 10 additional ProTips.

Goldman Sachs anticipates HPE will update its long-term guidance framework to include contributions from its recently closed Juniper acquisition, which expands the company’s footprint in enterprise/campus networking and AI systems.

The updated long-term guidance is expected to include 3-5% topline growth as a three-year compound annual growth rate from fiscal 2025 to 2028, with mid-single to high-single digit percentage growth in Networking and Server segments.

HPE’s Security Analyst Meeting is scheduled for Wednesday, October 15, in New York from 3:00 PM to 5:30 PM, where the company is also expected to outline a strategy update on the Juniper acquisition and provide a net leverage target of 2X by fiscal 2027.

In other recent news, Hewlett Packard Enterprise (HPE) reported strong financial performance with a notable 11% year-over-year revenue increase in its July quarter, which rose to 18% when including the Juniper acquisition, as highlighted by Evercore ISI. This acquisition has also prompted HPE to update its executive bonus targets, focusing 80% on company financial results such as revenue, operating profit, and annualized revenue run-rate. In light of these developments, JPMorgan has reiterated its Overweight rating with a $30 price target, viewing HPE as an inexpensive transformation story despite concerns about past execution.

Wells Fargo also raised its price target on HPE to $26, acknowledging the company’s positive results and guidance, although it expressed caution regarding the execution of the Juniper strategy and AI server profitability. Additionally, HPE has appointed Phil Mottram as the new Executive Vice President and Chief Sales Officer, succeeding the retiring veteran Meyer. Mottram will oversee global sales across HPE’s Servers and Hybrid Cloud solutions. These recent developments reflect HPE’s strategic moves and financial adjustments in the wake of its acquisition activities.

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