Hewlett Packard Enterprise (HPE) is anticipated to display encouraging fiscal fourth-quarter results soon, as analysts adopt a cautiously optimistic posture in the buildup to their official disclosure. According to a compilation by Visible Alpha of the reviews from 10 professional analysts, half of them gave 'buy' or similar valuation for this server manufacturer, while the other half recommended a 'hold' stance. They project a common price target around $23, indicating an approximately 8% increase compared to the stock's value shortly post the Monday market opening.
In terms of financial aspects, it is predicted that HPE's revenue will surge 12% year on year, reaching $8.23 billion. The net income is speculated to be around $884.7 million or 66 cents per share, showcasing a growth compared to $642 million, or 49 cents per share recorded the prior year.
A contingent of analysts from Bank of America, who follow the company's journey closely, expressed rather affirming expectations. They not only re-echoed their 'buy' rating but also elevated their price target from $24 to $26 earlier in November. They anticipate HPE's server revenue for the given quarter to augment by 33%, hitting $4.8 billion, subtly exceeding the common conception. These analysts show firm belief in the prospects of the AI server market in 2025.
In a recent initiative, HPE introduced new servers, fuelled by chips from Advanced Micro Devices (AMD), and structured to support AI clusters used in operations like training extensive language models. As per the Bank of America's analyst team, the fourth quarter might largely align with expectations. However, they hope the first quarter of fiscal 2025 to surpass the standard predictions considering the influence AI solutions might have.
On Monday, around noon, HPE's shares witnessed a nearly 1.5% boost, reaching $21.53. They have noticed an approximately 27% increase in 2024.