
Hewlett Packard (HPE) Stock Forecast & Price Target
Hewlett Packard (HPE) Analyst Ratings
Bulls say
Hewlett Packard Enterprise (HPE) is demonstrating strong momentum in its core compute business, with Gen11 products now representing over two-thirds of compute revenue and a year-over-year growth in servers of 31.7%, largely driven by the demand for AI compute systems. The company has a positive outlook for its financial performance, as reflected in a 109 basis points quarter-over-quarter and 143 basis points year-over-year increase in operating margin, reaching 11.1%, supported by robust cost savings and gains in market share. Additionally, HPE GreenLake's rapid growth to over 39,000 customers and a significant 48% year-over-year increase in annual recurring revenue to $1.9 billion underscores the company's strengthening position in hybrid cloud and software services.
Bears say
Hewlett Packard Enterprise has experienced a significant decline in gross margin, with a drop of 89 basis points quarter-over-quarter and 392 basis points year-over-year, falling to 30.9%, which is below analysts' expectations. The company anticipates a sequential decline in server revenue for Q1 FY25 due to weaker contributions from AI systems and expects operating margins in the server segment to fall to 10%-11% amid a transition to next-generation GPUs. Additionally, the Intelligent Edge segment has shown concerning performance, with sales remaining flat quarter-over-quarter but down 20.3% year-over-year, highlighting prolonged sales cycles and soft demand amid weaker enterprise spending expectations.
This aggregate rating is based on analysts' research of Hewlett Packard and is not a guaranteed prediction by Public.com or investment advice.
Hewlett Packard (HPE) Analyst Forecast & Price Prediction
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