{"id":42776,"date":"2025-08-22T11:36:55","date_gmt":"2025-08-22T11:36:55","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/22\/hewlett-packard-stock-surges-in-pretrading-after-morgan-stanley-upgrades-to-overweight\/"},"modified":"2025-08-22T11:36:55","modified_gmt":"2025-08-22T11:36:55","slug":"hewlett-packard-stock-surges-in-pretrading-after-morgan-stanley-upgrades-to-overweight","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/22\/hewlett-packard-stock-surges-in-pretrading-after-morgan-stanley-upgrades-to-overweight\/","title":{"rendered":"Hewlett Packard stock surges in pretrading after Morgan Stanley upgrades to overweight"},"content":{"rendered":"
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Hewlett Packard Enterprise (HPE) shares rose more than 3% in premarket trading on Thursday after Morgan Stanley upgraded the stock to overweight from equal weight. <\/p>\n

The investment bank also raised its price target by $6 to $28, implying a potential 33% upside from Wednesday\u2019s close.<\/p>\n

The upgrade follows a period of strong performance for HPE, with shares advancing roughly 20% in the past three months. <\/p>\n

Much of that momentum has been attributed to the company\u2019s completed acquisition of Juniper Networks in early July, a deal that Morgan Stanley believes will reshape HPE\u2019s earnings profile and long-term growth trajectory.<\/p>\n

Networking and AI exposure seen as key drivers<\/h2>\n

Analyst Erik Woodring, who authored the Thursday note, laid out a bullish thesis tied to HPE\u2019s evolving business mix. <\/p>\n

According to Woodring, nearly half of HPE\u2019s operations now stem from networking, with added exposure to artificial intelligence through Juniper\u2019s integration into xAI clusters.<\/p>\n

\u201cOur thesis is straightforward \u2013 with the closure of JNPR, we see 18% upside to FY26 Consensus EPS, with EPS growing to $2.70\u20133.00 in FY27,\u201d Woodring wrote. <\/p>\n

He added that as investors gain a clearer understanding of the company\u2019s increased networking and AI positioning, HPE\u2019s valuation multiple could move above its current 8x level.<\/p>\n

The analyst also pointed out that HPE remains one of the most attractively valued names in its sector, trading at 8.5 times Morgan Stanley\u2019s forecast for FY26 earnings. <\/p>\n

With AI-related expectations still modest, Woodring sees scope for stronger re-rating as market confidence improves.<\/p>\n

Upcoming results as catalyst<\/h2>\n

Looking ahead, Morgan Stanley expects HPE\u2019s near-term performance to be supported by its upcoming third-quarter results, scheduled for release after the bell on September 3.<\/p>\n

Woodring noted that while overall hardware spending growth is projected to decelerate in the second half of the year, HPE\u2019s networking and AI exposure provides resilience compared with peers.<\/p>\n

\u201cWe believe the July quarter setup is most favorable for OW-rated HPE, as the stock remains the cheapest of the group \u2026 and management should guide October quarter results decently ahead of Consensus, which is yet to incorporate the JNPR acquisition,\u201d he wrote.<\/p>\n

Beyond earnings, Woodring highlighted HPE\u2019s October analyst day as the most important upcoming catalyst. <\/p>\n

The event is expected to include long-term forecasts that could \u201chelp the market more clearly appreciate HPE\u2019s future earnings\/cash flow power.\u201d<\/p>\n

Wall Street remains divided on HPE<\/h2>\n

Despite Morgan Stanley\u2019s upgrade, Wall Street opinion on HPE remains split. <\/p>\n

Of the 20 analysts covering the stock, 10 have a strong buy or buy rating, while the other half maintain a hold rating, according to LSEG data.<\/p>\n

The divergence reflects both optimism around the Juniper acquisition and continued caution over broader industry headwinds, including slowing hardware spending. <\/p>\n

For now, however, the stock is gaining momentum as investors weigh its valuation discount against the potential upside from networking and AI-driven growth.<\/p>\n

The post Hewlett Packard stock surges in pretrading after Morgan Stanley upgrades to overweight<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Hewlett Packard Enterprise (HPE) shares rose more than 3% in premarket trading on Thursday after Morgan Stanley upgraded the stock to overweight from equal weight. The investment bank also raised its price target by $6 to $28, implying a potential 33% upside from Wednesday\u2019s close. The upgrade follows a period of strong performance for HPE, <\/p>\n","protected":false},"author":1,"featured_media":42777,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-42776","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=42776"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/42777"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=42776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=42776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=42776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}