Raymond James Downgrades Hewlett Packard Enterprise Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 13 2026
0mins
Source: seekingalpha
Hewlett Packard Enterprise Co (HPE) shares rose 5.02% and reached a 5-day high amid mixed market conditions.
Raymond James downgraded HPE from Strong Buy to Outperform and lowered the price target from $30 to $29, reflecting uncertainty around future growth despite analysts still viewing the stock as attractive. Analysts noted that HPE's strategy to focus on AI profits rather than market share may hinder growth, particularly as the Cloud and AI segments are not driving the anticipated growth. While analysts suggest HPE could gain market share from Supermicro, they believe Dell and Gigabyte are more likely to capitalize on this opportunity, indicating a potential weakening of HPE's market power among large cloud service providers.
The downgrade has raised concerns about HPE's future growth prospects, but the stock's recent performance suggests that investors may still see value in the company despite the challenges it faces.
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Analyst Views on HPE
Wall Street analysts forecast HPE stock price to fall
16 Analyst Rating
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 38.210
Low
21.00
Averages
27.13
High
31.00
Current: 38.210
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.
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See More
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- Optimistic Earnings Outlook: HPE is expected to report Q2 EPS of $0.53, reflecting a 39.5% year-over-year increase, with revenue projected to rise 28% to $9.77 billion, indicating strong performance in IT and AI networking solutions.
- Surge in Networking Revenue: Following the acquisition of Juniper Networks, HPE saw a 151.5% increase in networking revenue and a staggering 382.6% rise in data center networking revenue, highlighting its advantageous position in the rapidly growing networking market.
- Positive Analyst Ratings: Most analysts maintain a bullish outlook on HPE, with J.P. Morgan raising its price target from $27 to $37, driven by expectations of strong networking demand, although some analysts express concerns about the growth of the cloud and AI segments.
- Strong Stock Performance: HPE shares rose over 10% in morning trading on Friday, buoyed by Dell's impressive earnings report, reflecting market confidence in HPE's future growth, with a 59% increase in stock price year-to-date.
See More
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- Market Fragility Concerns: Despite stellar earnings driving stock indexes to all-time highs, Wall Street is worried about narrow leadership, as Matt Stucky, Chief Portfolio Manager at Northwestern Mutual Wealth Management, noted that such concentration could exacerbate market fragility and impact investor confidence.
- Semiconductor Sector Drive: Micron Technology (MU) crossed the $1 trillion market cap for the first time, becoming the 11th largest public company in the U.S., with its sharp rally contributing 18 points to the S&P 500, highlighting the strong performance of semiconductor and memory-related stocks in propelling the market.
- AI Supercycle: With accelerating demand for AI servers, Dell (DELL) saw its stock soar over 50% last week, while Hewlett Packard (HPE) jumped 12%, indicating that AI-related stocks are leading a new wave of investment interest and attracting more investor attention.
- Future Market Outlook: UBS strategists expect the S&P 500 to rise further in the medium term, targeting 7,900 points, emphasizing that market leadership will broaden beyond megacaps, and recommending diversification into global healthcare, industrials, and infrastructure to navigate market volatility.
See More
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- Stock Surge: Hewlett-Packard Enterprise (HPE) soared to an all-time high of $44.57 during the trading week, closing at $43.04 with a 12.64% increase, reflecting strong investor anticipation ahead of its earnings report.
- Revenue Expectations: The company is projected to report revenues between $9.6 billion and $10 billion for the second quarter, representing a 26% to 31.6% increase from last year's $7.6 billion, indicating robust market performance and growth potential.
- Earnings Reversal: GAAP diluted earnings per share are expected to range from $0.09 to $0.13, marking a significant turnaround from a loss of $0.82 in the same period last year, showcasing improved profitability.
- Future Outlook: Investors are keenly watching HPE's fiscal year 2026 outlook, previously guided to grow by 17% to 22%, with GAAP diluted EPS expected between $1.02 and $1.22, reflecting the company's confidence in future growth.
See More
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- Significant Stock Surge: Super Micro Computer (SMCI) shares rose 11.6% to close at $46.09, primarily driven by news of a new European AI cloud partnership, indicating strong market demand for AI infrastructure and investor optimism.
- Volume Spike: The trading volume reached 92.6 million shares, approximately 128% above the three-month average, reflecting heightened investor interest in the company's growth potential, particularly amid ongoing strong demand for AI servers.
- Robust Financial Performance: In the recent fiscal third quarter, Super Micro reported net sales exceeding $10.2 billion, more than doubling year-over-year, showcasing the strong momentum in AI server demand, with upcoming results expected to further validate this trend.
- Commitment to Compliance: The company's collaboration with Taiwanese authorities highlights its dedication to compliance amid increasing scrutiny of AI hardware exports, which will bolster investor confidence in its long-term growth prospects.
See More
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- Stock Performance: Super Micro Computer closed at $46.09, up 11.6%, primarily driven by news of a new European AI cloud partnership, indicating strong market demand for AI infrastructure and investor optimism.
- Surge in Trading Volume: The company's trading volume reached 92.6 million shares, approximately 128% above its three-month average of 39.8 million shares, reflecting heightened investor interest in the company's growth potential.
- Financial Performance: In the recent fiscal third quarter, Super Micro Computer's net sales more than doubled to $10.2 billion, indicating robust demand for AI servers and suggesting potential for sustained revenue growth in the future.
- Compliance Commitment: The company's cooperation with Taiwanese authorities regarding potential diversion of server technology highlights its commitment to compliance amid increasing scrutiny of AI hardware exports, thereby enhancing market confidence.
See More
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- Significant Stock Surge: Hewlett Packard Enterprise (HPE) shares rose 12.64% to close at $43.09, primarily driven by Dell's strong AI server performance, reflecting market optimism towards AI infrastructure.
- Surge in Trading Volume: Trading volume reached 66.7 million shares, approximately 260% above the three-month average, indicating heightened investor interest in the upcoming Q2 earnings report, which is expected to drive company performance.
- Positive Industry Outlook: Analysts project HPE's revenue to increase by 28% in Q2, contrasting with Dell's reported 88% revenue growth, highlighting the robust AI demand that closely ties HPE's fortunes to Dell's success.
- Strengthened Market Position: Since its IPO in 2015, HPE's stock has surged 348%, establishing a quasi-duopoly with Dell in the enterprise data center and server hardware sector, showcasing its strong competitive edge.
See More
