Bernstein Initiates Coverage of Hewlett Packard Enterprise (HPE) with a Market Perform Rating, $24 PT

Hewlett Packard Enterprise Company (NYSE:HPE) is one of the best growth stocks under $30 to buy. On September 16, Bernstein initiated coverage of Hewlett Packard Enterprise with a Market Perform rating and $24 price target. Prior to this announcement, the company released its Q3 2025 earnings report, where the company’s total revenue reached $9.1 billion, which was an increase of 18% year-over-year.

This growth was fueled by momentum in AI, networking, and hybrid cloud. A major highlight was the completed acquisition of Juniper Networks, which is expected to drive cost synergies of ~$600 million over the next 3 years. The Networking segment, now including Juniper Networks, made a revenue of $1.7 billion, which marked a 54% increase year-over-year.

The Server segment achieved revenue of $4.9 billion, which was up 16%. The Hybrid Cloud segment’s revenue was $1.5 billion, which was up 11%, marking its fourth consecutive quarter of year-over-year top-line growth. Furthermore, ARR grew to $3.1 billion, which was a 75% rise. In contrast, the Financial Services segment’s revenue of $886 million was down 1%.

Hewlett Packard Enterprise Company (NYSE:HPE) provides solutions that allow customers to capture, analyze, and act upon data seamlessly.

While we acknowledge the potential of HPE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.