UBS reiterates Neutral rating on HP Enterprise stock ahead of 2025 SAM

Published 13/10/2025, 15:10
UBS reiterates Neutral rating on HP Enterprise stock ahead of 2025 SAM

Investing.com - UBS maintained its Neutral rating and $23.00 price target on HP Enterprise (NYSE:HPE), currently trading at $25.36, ahead of the company’s 2025 Strategic and Analytical Meeting (SAM). The stock has shown remarkable strength with a 74.7% return over the past six months, according to InvestingPro data.

The investment bank expects HPE to provide both a fiscal year 2026 outlook and a three-year framework during the upcoming meeting. InvestingPro data shows that 10 analysts have recently revised their earnings estimates upward, with price targets ranging from $21 to $30.

UBS anticipates that HPE will guide for fiscal year 2026 revenue growth of 14% to 16% in constant currency terms, with fiscal years 2026-2028 growth projected at 6% to 8%.

The firm notes that these growth outlooks are complicated by the inclusion of Juniper results - four months in fiscal year 2025 and a full year in fiscal year 2026.

When excluding Juniper’s contribution from both fiscal years, UBS expects HPE’s normalized fiscal year 2026 growth guidance to be closer to 2%-4%.

In other recent news, Hewlett Packard Enterprise (HPE) has captured attention with its financial performance and strategic moves. Evercore ISI maintained its Outperform rating on HPE with a $28 price target, highlighting the company’s strong organic growth in the July quarter, where revenues increased by 11% year-over-year, or 18% when factoring in the Juniper acquisition. Goldman Sachs raised its price target for HPE to $27 from $25, maintaining a Neutral rating, and expects the company to project fiscal 2026 revenue growth of 5-7% at its upcoming Security Analyst Meeting. Meanwhile, JPMorgan reiterated its Overweight rating with a $30 price target, considering HPE an inexpensive transformation story post-Juniper acquisition, despite some investor concerns about past execution issues.

Additionally, HPE updated its executive bonus targets following the Juniper acquisition, adjusting financial performance metrics to determine annual cash bonuses for executive officers. The revised targets for fiscal 2025 are based largely on company financial results, including revenue and operating profit. In leadership changes, Phil Mottram has been appointed as Executive Vice President and Chief Sales Officer, effective November 1, 2025, succeeding the retiring veteran, Meyer. These developments reflect HPE’s ongoing efforts to enhance its financial and strategic positioning in the market.

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