HPE Hits 20-Day Low Amid Downgrade by Morgan Stanley
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17 Nov 25
Source: seekingalpha
Shares of HPE.N declined sharply today, hitting a 20-day low as market sentiment turned bearish following a downgrade from Morgan Stanley. The brokerage's report highlighted rising memory costs and declining demand for non-AI hardware, which are expected to exert significant pressure on margins across the sector. HPE's rating was adjusted to 'equal-weight' with a price target of $25, reflecting concerns over increasing component costs and integration challenges. Analysts noted that hardware OEMs are struggling to offset memory inflation, which could lead to a median 60-basis-point decline in global OEM margins by 2026, further contributing to HPE's downward price movement.
Analyst Views on HPE
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
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
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.
