B of A Securities Raises HPE Stock Target Price to $24

Hewlett Packard Enterprise (HPE) saw its stock target price raised by B of A Securities from $23 to $24, representing a 4.35% change. The rating remains "Buy." Analysts forecast an average target price of $21.94, with a high estimate of $29 and a low of $16. The average target implies an upside of 3.03% from the current price.

Hewlett Packard Enterprise (HPE) has seen its stock target price increased by B of A Securities from $23 to $24, representing a 4.35% change. The analyst, Wamsi Mohan, maintained a "Buy" rating on the stock, indicating continued confidence in its performance [1].

The average one-year price target for HPE, based on the forecasts of 14 analysts, is $21.94, with a high estimate of $29 and a low estimate of $16. This average target implies an upside of 3.03% from the current price of $21.29 [1].

The consensus recommendation from 18 brokerage firms is "Outperform," with an average rating of 2.3 out of 5, indicating strong buy signals. GuruFocus estimates the GF Value for HPE in one year to be $19.78, suggesting a downside of 7.09% from the current price [1].

HPE's recent earnings report highlighted mixed performance. The company reported Q2 revenue of $7.6 billion, up 7% year over year, and achieved year-over-year revenue growth in every product segment. However, the non-GAAP gross margin decreased by 370 basis points year over year, and free cash flow was negative $847 million [3].

The company anticipates achieving at least $600 million in cost synergies over the next three years, with a third of these savings expected by the end of the first year. HPE's global supply chain is projected to benefit from COGS improvements as enhancements in Juniper's procurement processes are implemented [2].

In a separate development, HPE is under scrutiny from activist investor Elliott Management, which holds a $1.5 billion stake in the company. The activist group has a history of forcing out chief executives, but HPE has declined to comment on the ongoing negotiations [2].

References:
[1] https://www.gurufocus.com/news/2971893/hpe-stock-target-price-raised-to-24-by-b-of-a-securities-hpe-stock-news
[2] https://investorempires.com/at-hewlett-packard-enterprise-ceo-antonio-neri-is-negotiating-with-an-activist-investor-with-a-history-of-forcing-out-chief-executives/
[3] https://www.gurufocus.com/news/2971475/bofa-analyst-increases-price-target-for-hpe-to-24-hpe-stock-news?mobile=true