Goldman Sachs reinstates Neutral rating on Hewlett Packard with PT of $22.

Goldman Sachs reinstates Neutral rating on Hewlett Packard with PT of $22.

Goldman Sachs has reinstated coverage on Hewlett Packard Enterprise (HPE) with a Neutral rating and a price target of $22.00, following the company's acquisition of Juniper Networks. This move comes after a period of coverage suspension, during which HPE completed its acquisition of Juniper Networks on July 2, 2025.

HPE's acquisition of Juniper Networks, valued at approximately $14 billion, has significantly expanded the company's presence in both enterprise/campus and data center networking markets. The technology company, now valued at $27.24 billion in market cap, has demonstrated solid financial performance with 11.79% revenue growth in the last twelve months.

Goldman Sachs believes that 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. 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.

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 expects the acquisition of Juniper Networks to generate significant cost synergies, with HPE increasing its expected savings from $450 million to $600 million.

In other recent news, 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.

The recent developments highlight HPE's ongoing strategic initiatives and collaborations aimed at enhancing its business operations. The company's stock currently trades at $20.76, with analysts' targets ranging from $16 to $30.

References:
[1] https://www.investing.com/news/analyst-ratings/goldman-sachs-reinstates-hp-enterprise-stock-with-neutral-rating-93CH-4149392
[2] https://www.zawya.com/en/business/investment/goldman-sachs-alternatives-buys-majority-stake-in-mace-unit-lnhddgwn
[3] https://www.ainvest.com/news/goldman-sachs-q1-earnings-quarter-2507/