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Investing.com - Raymond James has raised its price target on HP Enterprise (NYSE:HPE) to $30.00 from $29.00 while maintaining a Strong Buy rating following the company’s fiscal third-quarter 2025 results. The new target represents the highest among analysts, with targets ranging from $16 to $30. According to InvestingPro data, HPE is currently trading near its Fair Value, with the stock showing impressive returns of 25% over the past year.
The firm noted that HPE delivered better-than-expected quarterly results but provided mixed guidance, which includes a projected 30% quarter-over-quarter decline in AI platforms revenue, attributing this to normal business lumpiness. The company maintains strong fundamentals with revenue growth of 11.8% and a healthy gross profit margin of 30.3%, according to InvestingPro’s latest financial health assessment.
Raymond James expressed confidence in HPE’s long-term prospects, highlighting that the recent Juniper acquisition is already contributing positively to the company’s improving operating margin outlook.
The analyst expects HPE to disclose its strategy and financial outlook at an upcoming analyst meeting in October, and views the company as part of an "AI networking basket" of stocks.
Raymond James made modest adjustments to its earnings per share estimates for HP Enterprise while raising the price target to reflect the company’s growing role in AI initiatives, bolstered by the Juniper acquisition and expanding market opportunities.
In other recent news, Hewlett Packard Enterprise (HPE) reported strong financial results for the third quarter of 2025, exceeding market expectations. The company achieved non-GAAP earnings per share of $0.44, which was higher than the anticipated $0.42. Additionally, HPE’s revenue reached $9.1 billion, surpassing the forecasted $8.35 billion. These results indicate a robust performance for the quarter, contributing to positive investor sentiment.
Morgan Stanley maintained its Overweight rating on HPE, with a price target of $28.00, following the earnings announcement. The firm described HPE’s results as largely as expected, noting a modest revenue upside and some margin fluctuations. The guidance for October was in line with or slightly better than consensus estimates, which includes a full quarter of results from Juniper Networks. These developments highlight HPE’s solid financial standing and positive outlook according to analysts.
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