Hewlett Packard (HPE) Stock Forecast & Price Target

Hewlett Packard Enterprise (HPE) demonstrates a strong growth trajectory with various scenarios indicating a compound annual growth rate (CAGR) for revenue ranging from 11% to 13% by 2027, equating to an estimated revenue between $41.3 billion and $45.2 billion. The company's integration of Juniper, which has seen over 30% year-over-year growth in annual recurring revenue (ARR), further enhances its position in the AI infrastructure market and is expected to drive product revenue growth to approximately 14% CAGR. HPE is well-positioned to capitalize on the expanding total addressable market (TAM) of $692 billion associated with AI-driven solutions, forecasting a significant increase in AI-related product revenue from 20% to around 35% by 2028.

Hewlett Packard Enterprise (HPE) has experienced significant share losses across its core markets, particularly in the server segment, where it has lost approximately 13% of market share over the past decade, and an alarming 18% within the enterprise-only market. The company's transition toward an as-a-Service platform, while potentially beneficial in the long term, is projected to contribute less than 10% to forward revenue for the upcoming years, indicating a slow adaptation to emerging market demands. Additionally, HPE's historical performance has led to a lower margin profile and trading at a discount to peers, compounded by concerns regarding changing industry fundamentals and increased competition from rivals like Lenovo, which threaten its market position.