Hewlett Packard (HPE) Stock Forecast & Price Target

Hewlett Packard Enterprise (HPE) is positioned for robust growth, with projections suggesting that revenue could increase at a compound annual growth rate (CAGR) of 11% to 13% by 2027, reaching between $41.3 billion to $45.2 billion, driven by product revenue expansion centered around high-performance computing and AI solutions. The company’s strategic acquisition of Juniper is expected to enhance its market presence, particularly in AI infrastructure, with anticipated product revenue from AI systems increasing from 20% to approximately 35% by 2028. HPE's focus on delivering a comprehensive edge-to-cloud portfolio positions it favorably within a significant total addressable market of $692 billion, likely facilitating continued revenue growth in the coming years.

The analysis indicates a negative outlook on Hewlett Packard Enterprise (HPE) due to declining market share in the server and enterprise markets, primarily attributed to increased competition and a shift towards self-built alternatives, resulting in a loss of approximately 13% in overall server share over the past decade. HPE's execution issues, changing reporting structures, and a low margin profile have contributed to investor sentiment, compounded by the expectation that its transition to an as-a-Service platform will contribute less than 10% to future revenue for the next few years. Additionally, HPE's exposure to slower-growing market segments and its status as a “material share donor” to competitors, such as Lenovo, further exacerbate concerns regarding its financial performance and market position.