Citi Lowers PT on Hewlett Packard Enterprise Company (HPE)

​Hewlett Packard Enterprise Company (NYSE:HPE) is among the Best Affordable Stocks Under $40 to Buy. On February 17, Asiya Merchant from Citi lowered the price target on the stock from $28 to $26, while keeping a Buy rating. Earlier on January 13, Goldman Sachs upgraded Hewlett Packard Enterprise Company (NYSE:HPE) from Hold to Buy and raised the price target from $28 to $31.

​Asiya Merchant from Citi noted that the lowered price target reflects the firm’s adjustment of the broader hardware and storage sector coverage ahead of upcoming Q4 earnings reports. The firm highlighted that the commentary on end-market demand remains mixed, signaling ongoing uncertainty in customer spending trends.

​On the other hand, Goldman noted that the upgrade is based on the transformative nature of Hewlett Packard Enterprise Company’s (NYSE:HPE) Juniper Networks acquisition. The firm added that the deal has shifted the company’s revenue mix to a higher-margin and faster-growing Networking segment. Goldman expects the segment to make roughly 50% of EBIT by fiscal 2026, with the expectation to drive revenue growth of around 19% during the year. The firm finds the company to be an attractive entry point in the networking, servers, and storage sector.

​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.

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.