Hewlett Packard (HPE) Stock Forecast & Price Target

Hewlett Packard Enterprise (HPE) is positioned for significant growth, with revenue projections across various scenarios indicating a compound annual growth rate (CAGR) ranging from 11% to 13% through 2027, driven by its strong product offerings in compute servers, storage, and networking. The company's successful acquisition of Juniper has proven beneficial, particularly in the rapidly expanding AI sector, where HPE expects to increase its product revenue from AI systems from approximately 20% to about 35% by 2028, aligning with a total addressable market of $692 billion. Additionally, HPE's strategic focus on hybrid clouds and hyperconverged infrastructure further enhances its competitive edge and growth potential in the evolving technology landscape.

Hewlett Packard Enterprise's stock outlook appears negative due to a significant loss of market share in its core server business, with a 13% decrease over the past decade and a further 18% drop in the enterprise-only market segment. The company's ongoing transition to an as-a-Service model, while potentially beneficial long-term, is expected to contribute less than 10% of forward revenue for the next few years, indicating slow growth prospects. Additionally, HPE's lower margin profile and mixed execution, coupled with its historically discounted trading valuation compared to peers, further dampen investor sentiment and raise concerns regarding its competitiveness against rivals like Lenovo.