JPMorgan Lowers Hewlett Packard Enterprise Target to $27, Goldman Upgrades to Buy at $31
JPMorgan cut HPE’s price target to $27 from $30 while keeping an Overweight rating, citing muted share price upside despite robust near-term hardware and networking demand. Goldman Sachs upgraded Hewlett Packard Enterprise to Buy with a $31 target, noting the Juniper merger solidifies its number-two enterprise networking position and 28% average upside.
1. Analyst Revisions
On February 19, JPMorgan lowered Hewlett Packard Enterprise's price target to $27 from $30 while retaining an Overweight rating. Earlier on January 13, Goldman Sachs upgraded the company from Neutral to Buy with a $31 target.
2. Near-Term Outlook
JPMorgan highlighted robust pull-forward demand in hardware and networking segments but cautioned that share price upside will remain muted due to challenging investor sentiment in the sector.
3. Valuation Indicators
Hewlett Packard Enterprise trades at a forward P/E of 9.07, with an average analyst price target of $26 implying roughly 28% upside potential from current levels.
4. Strategic Merger Impact
Goldman Sachs emphasized that the recent Juniper merger cements Hewlett Packard Enterprise's position as the number-two player in enterprise networking and broadens its data center networking reach.