How Do Analysts View HPE Stock after Q1 Results?



HPE’s Q1 results

Hewlett Packard Enterprise (HPE) reported better-than-forecasted earnings and weaker-than-expected revenue results in the first quarter of fiscal 2019. A significant increase in margins drove the company’s profits in the quarter. Further, its efforts to cut down on its costs and expenses and its share buyback plan are expected to strengthen its earnings further.

Article continues below advertisement

Analysts’ recommendations

After the earnings results, out of the 20 analysts covering HPE, five analysts have recommended a “buy” for the stock, while 13 have rated the stock a “hold.” Only two analysts have given the stock a “sell.” Analysts have set a target price of $17.50 for the stock and a median consensus estimate of $17.00. HP Enterprise is now trading at a 4% discount to its consensus median target estimate.

Analysts such as BMO, Instinet, and Morgan Stanley have raised their price targets on HPE stock after the company posted upbeat earnings in the first quarter and raised its outlook for fiscal 2019. BMO and Instinet raised their price targets to $18 and $17, respectively, from $16, Morgan Stanley raised it to $16 from $15.

However, J.P. Morgan seems to be cautious on the stock amid a declining top line, foreign currency headwinds, and pressure due to the exit of Tier 1 space. Therefore, J.P. Morgan maintains a neutral stance on the stock.

Market capitalization

The market capitalization of HP Enterprise stands at $22.47 billion as of February 22. Peers HP (HPQ), Cisco Systems (CSCO), Juniper (JNPR), and Apple have a market capitalization of $36.88 billion, $220.6 billion, $9.53 billion, and $815.6 billion, respectively.


More From Market Realist