Hewlett Packard (HPE) Stock Forecast & Price Target

Hewlett Packard Enterprise (HPE) is projected to experience robust revenue growth, with a base case growth trajectory of approximately 12% CAGR, potentially reaching $43.4 billion by 2027, driven by significant increases in both product and service lines. The company is well-positioned within the AI infrastructure market, anticipating an increase in product revenue from AI systems from 20% to around 35% by 2028, targeting a total addressable market of $692 billion. HPE's acquisition of Juniper is expected to enhance growth rates further, particularly through advancements in AI integration and market share gains in networking solutions.

Hewlett Packard Enterprise (HPE) has experienced significant share losses, notably a decline of approximately 13% in overall server market share and an 18% decrease within the enterprise-only market, due to heightened competition and the shift towards self-build solutions. The company's lackluster results stem from an uncompetitive hyperconverged infrastructure (HCI) offering and a failure to achieve margin improvement, which has negatively impacted investor sentiment despite long-term plans for better margins through its transition to an as-a-Service model. Furthermore, HPE's ongoing underperformance is compounded by exposure to slow-growing markets, perpetuating its historical discount relative to peers and increasing the risk of being surpassed by competitors like Lenovo.