Loop Capital Raises HPE Price Target to $18 After Strong AI Server Performance

Hewlett Packard Enterprise Company (NYSE:HPE) is one of the 8 cheap beginner stocks to buy right now. Loop Capital Markets revised its financial outlook for Hewlett Packard Enterprise Company (NYSE:HPE) on June 9, maintaining its Hold rating on the company’s shares while increasing the price target from $16 to $18. The change was made in response to HP Enterprise’s April quarter financial release, which showed a robust server revenue performance.

With a revenue of $4.1 billion, HP Enterprise’s server division recorded a 7% year-over-year gain. Although traditional server volumes declined by 5% on a quarter-over-quarter basis, this growth was somewhat offset by higher average unit pricing. Notably, with a significant increase in the enterprise and sovereign market segments—where enterprise orders made up one-third of the total—HP Enterprise received $1.1 billion in net new orders in the AI server segment. The hybrid cloud market also performed well, as evidenced by the triple-digit annual growth of HP Enterprise’s Alletra product line.

Given the improvements, Hewlett Packard Enterprise Company (NYSE:HPE) has adjusted its fiscal year 2025 revenue projection, reducing the range of anticipated year-over-year revenue growth from 7–11% to 7-9%.

Hewlett Packard Enterprise Company (NYSE:HPE) provides data services globally through its several divisions, including Corporate Investments, Compute, HPC & AI, Storage, Intelligent Edge, and Financial Services. Additionally, the company offers software-defined infrastructure (SDI) solutions to help businesses with software development and deployment, automation, network management, and storage.

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.