Shares of Hewlett Packard Enterprise Co (NYSE:HPE) are up 3% to trade at $21.66 at last check, after a Morgan Stanley upgraded to "overweight" from "equal weight," with a price-target hike to $28 from $22. The analyst cited the company's recent purchase of Juniper Networks (JNPR) for $14 billion, as well as the outlook of AI demand.
HPE has been choppy in the recovery off its April 4, two-year low of $11.96, most recently trapped in a channel between $20 and $22. The shares surged to a record peak of $24.66 back in January, and following today's jump, are back in the black year to date.
Analysts were split on Hewlett Packard Enterprise stock coming into today. Nine of the 18 in coverage sport a "hold" recommendation, meaning there is still plenty of room for additional bull notes, should this bearish sentiment continue to unwind.
Options are reasonably priced at the moment. HPEs Schaeffer's Volatility Index (SVI) of 47% ranks in the low 27th percentile of its annual range, meaning options traders are pricing in low volatility expectations.
