HPE Investors Eye October Analyst Day as Next Big Catalyst

Hewlett-Packard Enterprise Company (NYSE:HPE) is one of the Buzzing AI Stocks on Wall Street. On September 4, Morgan Stanley analyst Erik Woodring reiterated an Overweight rating on the stock with a $28.00 price target following its latest quarterly report.

According to the firm, HPE’s results have been “largely as-expected” with modest revenue beat and some margin variability. October guidance was in-line to slightly ahead of consensus estimates, including a full quarter of Juniper Networks results.

“Tonight’s results were largely as-expected – modest topline upside, some noise around margins, but an October guide that was in-line to slightly better than Consensus, inclusive of a full quarter of JNPR results. Underlying this performance/guide was solid execution across segments, a key factor we wanted to see after a few quarters of mixed results, better than expected end-market demand commentary, and faster-than-expected mix shift to Networking, which accounted for 46% of operating income this quarter despite just 1 month of JNPR contribution.”

A cross section of a data analyst overviewing code on several monitors.

The firm discussed how AI sever margins were concerning due to a single large deal in the quarter and not because of some underlying structural issue. Overall, the firm believes that HPE’s earnings report has been a “small step in the right direction,” and the company did what it needed to do (execute).

“HPE’s next catalyst – October 15th Analyst Day (SAM) – should prove to be more important as we’ll get more detail on long-term growth targets, multi-year margins/a long-term synergies update, capital allocation and FCF margins, all of which play an important role in shifting sentiment and driving multiple expansion from here.”

Hewlett Packard Enterprise Company (NYSE:HPE), an American multinational technology company, provides high-performance computing systems, AI software, and data storage solutions for running complex AI workloads.

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Disclosure: None.