HPE PT Raised to $24, Buy - Juniper Deal, AI Demand Fuel Optimism

Hewlett-Packard Enterprise Company (NYSE:HPE) is a Must-Watch AI stock on Wall Street. On July 11, BofA Securities analyst Wamsi Mohan raised the price target on the stock to $24.00 (from $23.00) while maintaining a “Buy” rating.

The reason behind the price target adjustment is that the firm now expects increased cost synergy from the Juniper acquisition. HPE now anticipates at least $600 million in cost synergies over the next three years. This is up from its previous estimate of $450 million.

“Hewlett-Packard Enterprise (HPE) now expects at least $600M (up from $450M) in cost synergies over the next 3 years, with 1/3 of savings realized by end of year 1 and the rest spready evenly across the ensuing years. This benefit will be accretive to non-GAAP EPS in the first full year and accretive to FCF in year 2 and 3. Full, detailed guidance will be provided later during the company’s Analyst Day in October."

A woman programmer in a modern office working with multiple computer servers. "HPE CEO Antonio Neri attributed the incremental $150M to largely two reasons. First, management is confident on incremental opportunities from synergy for its networking business. Second, HPE’s global supply chain should accrue COGS benefits as JNPR’s procurement process improves. Reiterate Buy as we see upside from Juniper synergies, structurally higher margins and upside from AI. Our PO moves to $24 (from $23) on 10x CY26E pro- forma EPS of $2.30.”

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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