Hewlett Packard Enterprise Co (HPE) saw its stock drop by 4.38%, hitting a 20-day low, as the broader market faced significant declines with the Nasdaq-100 down 1.55% and the S&P 500 down 1.36%.
Despite HPE's strong position in the AI infrastructure market, holding six of the world's top ten supercomputers and benefiting from its acquisition of Cray, the stock's decline is attributed to sector rotation as investors react to overall market weakness. Analysts have expressed a cautious outlook on IT hardware demand, which may impact HPE's performance despite its growth potential in AI systems.
The implications of this decline suggest that while HPE is well-positioned in a growing sector, external market pressures are influencing investor sentiment. The company's valuation remains attractive, trading at a price-to-earnings ratio of 8.0, but the current market environment may require patience from investors.
Wall Street analysts forecast HPE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HPE is 27.13 USD with a low forecast of 21.00 USD and a high forecast of 31.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
Wall Street analysts forecast HPE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HPE is 27.13 USD with a low forecast of 21.00 USD and a high forecast of 31.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 21.710
Low
21.00
Averages
27.13
High
31.00
Current: 21.710
Low
21.00
Averages
27.13
High
31.00
Evercore ISI
Outperform
downgrade
$28
2025-12-11
Reason
Evercore ISI
Price Target
$28
AI Analysis
2025-12-11
downgrade
Outperform
Reason
Evercore ISI removed HP Enterprise from the firm's "Tactical Outperform" list following the company's October-end quarterly earnings release last week. While there was "some noise" around the fiscal Q4 print and January quarter revenue guidance below the Street, the firm believes its long-term bull thesis remains "largely intact" and notes that its out-year estimates remained largely unchanged. The firm has an Outperform rating and $28 price target on HP Enterprise shares.
Argus
Buy
maintain
$25 -> $30
2025-12-10
Reason
Argus
Price Target
$25 -> $30
2025-12-10
maintain
Buy
Reason
Argus raised the firm's price target on HP Enterprise to $30 from $25 and keeps a Buy rating on the shares. The company had missed consensus revenue expectations for Q4 as server sales unexpectedly declined, but the firm believes this business will accelerate in FY26, the analyst tells investors in a research note. HP Enterprise trades at inexpensive current valuations, which do not reflect the potential for top- and bottom-line prospects given the many ways in which the company can participate in the AI market, the firm added.
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Barclays
Tim Long
Overweight
maintain
$27 -> $28
2025-12-05
Reason
Barclays
Tim Long
Price Target
$27 -> $28
2025-12-05
maintain
Overweight
Reason
Barclays analyst Tim Long raised the firm's price target on HP Enterprise to $28 from $27 and keeps an Overweight rating on the shares post the earnings report. The firm says deal timing brought server weakness in the quarter while storage was weaker than expected as management focused on profitable business.
BWG Global
Mixed -> Positive
upgrade
2025-11-24
Reason
BWG Global
Price Target
2025-11-24
upgrade
Mixed -> Positive
Reason
BWG Global upgraded its view of HP Enterprise to Positive from Mixed, citing checks.
About HPE
Hewlett Packard Enterprise Company is a global technology company focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge to cloud. Its customers range from small-and-medium-sized businesses to large global enterprises and governmental entities. Its segments include Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other. Its Server segment offerings consist of general-purpose servers for multi-workload computing, workload-optimized servers, and integrated systems. Its Hybrid Cloud segment offers a range of cloud-native and hybrid solutions across storage, private cloud and the infrastructure software-as-a-service space. The Networking segment develops and sells high-performance networking and security products and services. Its Financial Services segment provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs, and asset management services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
