Hewlett Packard (HPE) Stock Forecast & Price Target

Hewlett Packard Enterprise (HPE) is positioned for robust growth, with projections indicating a revenue increase at a compound annual growth rate (CAGR) ranging from 11% to 13% by 2027, potentially reaching between $41.3 billion and $45.2 billion. The company’s focus on AI infrastructure is expected to be a significant driver, as it anticipates that approximately 35% of product revenue will stem from AI systems by 2028, equating to about $10 billion in revenue. HPE's strategic acquisition of Juniper and the strong performance of its Mist platform further enhance its competitive edge in the hybrid cloud and hyperconverged infrastructure market.

Hewlett Packard Enterprise (HPE) has experienced significant share losses of approximately 13% in the server market over the past decade, exacerbated by an uncompelling hyper-converged infrastructure offering and increased competition, notably from Lenovo. The company's lower margin profile and inconsistent execution have led to persistent discounts compared to peers, contributing to a negative investor sentiment despite aspirations for a long-term transition to an as-a-Service platform. Furthermore, HPE's exposure to slower-growing markets and the anticipated sluggish growth of its as-a-Service segment, which is expected to contribute less than 10% of forward revenue in the coming years, further underscores the downward outlook for the company's stock.