Hewlett Packard Enterprise: A Buy Rating on Strong AI Growth Prospects and Market-Leading Cooling Solutions

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Bank of America Securities analyst Wamsi Mohan maintained a Buy rating on Hewlett Packard Enterprise (HPE – Research Report) today and set a price target of $24.00.

Wamsi Mohan’s rating is based on a comprehensive evaluation of Hewlett Packard Enterprise’s strategic positioning and future growth prospects in the evolving computing market. Mohan sees the company as well positioned to capitalize on the increasing demand for large-scale AI systems, noting HPE’s engineering prowess and history of deploying large-scale systems effectively. Additionally, the buy rating is supported by the company’s attractive valuation, the potential upside from its recent Juniper acquisition, consistent cost management, and the exposure to the burgeoning AI sector.

Furthermore, the report highlights the critical role of liquid cooling technology in supporting the rapid growth of data center rack density driven by AI’s power-intensive requirements. With HPE’s market leadership in servers and its expanding suite of liquid cooling solutions, Mohan anticipates significant enterprise upside as the market shifts towards adopting these more efficient cooling methods. HPE’s strong market share and established enterprise relationships, combined with its ability to offer comprehensive support and service, are seen as key advantages in capturing market opportunities in the high-density server space.

According to TipRanks, Mohan is a 5-star analyst with an average return of 11.2% and a 59.41% success rate. Mohan covers the Technology sector, focusing on stocks such as Apple, Amphenol, and Seagate Tech.

In another report released on September 25, Barclays also upgraded the stock to a Buy with a $24.00 price target.

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Hewlett Packard Enterprise (HPE) Company Description:

Hewlett Packard Enterprise Co. engages in the provision of information technology, technology and enterprise products, solutions, and services. It operates through the following segments: Hybrid IT, Intelligent Edge, Financial Services, and Corporate Investments. The Hybrid IT segment provides a broad portfolio of services-led and software-enabled infrastructure and solutions. The Intelligent Edge segment comprises of enterprise networking and security solutions for businesses of any size, offering secure connectivity for campus and branch environments, operating under the Aruba brand. The Financial Services segment offers investment solutions, such as leasing, financing, information technology consumption, utility programs and asset management services. The Corporate Investments segment includes Hewlett Packard Labs and certain business incubation projects. The company was founded in 1939 and is headquartered in San Jose, CA.

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