HPE Price Target Lowered to $23 on Cyclical Concerns
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On February 18, Morgan Stanley analyst Erik Woodring lowered the firm’s price target on Hewlett Packard Enterprise Company (NYSE:HPE) to $23 from $25 and maintained an Equal Weight rating. While the firm anticipates “a solid, if not good,” January quarter and April quarter outlook from off-cycle hardware names, it is increasingly cautious on the memory backdrop, reflecting concerns around potential cyclical moderation within certain IT hardware segments.
On February 4, 2026, HPE’s board declared a $0.953125 per-share dividend on its 7.625% Series C Mandatory Convertible Preferred Stock, payable March 1 to shareholders of record on February 15, underscoring its commitment to returning capital to preferred investors.
In addition, Hewlett Packard Enterprise Company (NYSE:HPE) reported fourth-quarter revenue of $9.7 billion, representing 14% year-over-year growth, with non-GAAP operating income increasing 26% and operating margin reaching a record 12.2%. AI system orders totaled $6.8 billion for the fiscal year, with sovereign and enterprise customers accounting for more than 60% of cumulative bookings since 2023. The successful integration of Juniper Networks further strengthened HPE’s networking portfolio and contributed meaningfully to revenue. Strong AI-driven demand, expanding margins, and disciplined capital returns reinforce the company’s positioning for sustained earnings growth despite near-term industry caution.
Hewlett Packard Enterprise Company (NYSE:HPE), headquartered in Spring, Texas, is a global enterprise IT provider focused on servers, storage, networking, containerization software, and consulting and support services for business and government customers.
While we acknowledge the potential of HPE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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