BofA Reiterates Buy Rating on HP Enterprise (HPE) After Strong Q2 Results

On June 4, BofA reiterated the Buy rating on Hewlett Packard Enterprise Company (NYSE:HPE), keeping the price target at $20.

Wamsi Mohan from BofA Securities keeps his positive view on HPE based on the company’s strong growth during Q2 2025. HPE exceeded both the revenue and earnings estimates. The company achieved $7.63 billion in total revenues, up by 7% from a year ago and surpassing estimates by $129.67 million. The EPS was around $0.38, beating the consensus by $0.05. HPE’s quarterly results were boosted by strong performances across its cloud and AI segments.

BofA Reiterates Buy Rating on HP Enterprise (HPE) After Strong Q2 Results

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Mohan remains optimistic about HPE following the company’s guidance for Q3, with both earnings and revenue expected to surpass consensus. The company expects Q3 2025 earnings between $0.40-$0.45 compared to the consensus of $0.42, while the revenue guidance is between $8.20-$8.50 billion against the analyst consensus of $8.23 billion. Mohan believes that the AI systems orders and the company’s new AI deals will help its growth in the upcoming quarters. HPE has made major developments with new product launches, including advanced private cloud solutions and AI collaborations with Nvidia. The analyst also sees Hewlett Packard’s cost-cutting measures to support its positive outlook.

Hewlett Packard Enterprise Company (NYSE:HPE) is a global edge-to-cloud company that provides various products and solutions. Its offerings include cloud services, computing, high-performance computing & AI, intelligent edge, software, and storage.

While we acknowledge the potential of HPE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HPE and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure. None.