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Investing.com - Morgan Stanley has reiterated an Overweight rating and $28.00 price target on HP Enterprise (NYSE:HPE) following the company’s latest earnings report. Currently trading at $22.82, InvestingPro analysis suggests the stock is slightly undervalued, with analyst targets ranging from $16 to $30.
The firm described HPE’s results as "largely as-expected" with modest revenue upside and some margin fluctuations, while noting that October guidance was in-line to slightly better than consensus estimates, including a full quarter of Juniper Networks results. The company has demonstrated solid financial health, earning a "GOOD" rating from InvestingPro, with revenue growth of 11.8% over the last twelve months.
Morgan Stanley highlighted solid execution across segments after several quarters of mixed results, better than expected end-market demand, and a faster-than-expected mix shift to Networking, which accounted for 46% of operating income despite just one month of Juniper Networks contribution.
While AI server margins raised some concerns, Morgan Stanley indicated these were driven by a single large deal in the quarter rather than representing a structural issue for the company.
The firm characterized the earnings report as "a small step in the right direction" while pointing to HPE’s upcoming October 15th Analyst Day as a more significant catalyst that will provide details on long-term growth targets, multi-year margins, synergy updates, capital allocation, and free cash flow margins.
In other recent news, Hewlett Packard Enterprise (HPE) reported stronger-than-expected financial results for the third quarter of 2025. The company achieved non-GAAP earnings per share of $0.44, surpassing the anticipated $0.42. Additionally, HPE’s revenue reached $9.1 billion, exceeding the forecasted $8.35 billion. These figures highlight a solid performance for the company in this period. The positive earnings report was followed by a slight increase in aftermarket trading, although specific stock price movements are not the focus here. Investors and analysts will likely keep an eye on HPE’s future developments following these results.
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