Hewlett Packard Enterprise Company (HPE)'s 2026 Outlook Disappoints but KeyBanc Maintains Rating

Hewlett Packard Enterprise Company (NYSE:HPE) is among the overlooked AI stocks to buy now. On October 16, 2025, KeyBanc reaffirmed its ‘Sector Weight’ rating on Hewlett Packard Enterprise Company (NYSE:HPE) after the company’s Strategic and Analytical Meeting (SAM). While remaining “underwhelmed” with the tech company’s 2026 and long-term financial targets highlighted at the event, the investment firm notes that pure-play companies demonstrate better quality assets in the IT hardware sector.

The firm further raised concerns regarding the company’s strategic approach to networking, which it referred to as “lack of clarity” on growth catalysts in that area. It remains uncertain how aggressive Hewlett Packard Enterprise Company (NYSE:HPE) will be in its server business, as KeyBanc pointed out.

While acknowledging HP Enterprise’s prioritized efforts in cost reduction and free cash flow returns to shareholders, the firm is certain of the company’s key controllable actions. Regarding the Juniper Networks integration, KeyBanc highlighted that Hewlett Packard Enterprise Company (NYSE:HPE) requires an “accelerating growth profile” to lift its share price.

Hewlett Packard Enterprise Company (NYSE:HPE) is a Texas-based company that provides solutions to facilitate seamless data operations. Founded in 1939, the company offers HPE ProLiant Rack and Tower servers, HPE Synergy, HPE Scale Up Servers, and HPE Aruba products, among others.

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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