Hewlett Packard (HPE) Stock Forecast & Price Target

Hewlett Packard Enterprise is positioned for significant revenue growth, with projections indicating a compound annual growth rate (CAGR) ranging from 11% to 13% across different scenarios, potentially reaching $41.3 billion to $45.2 billion by 2027. The integration of Juniper, which is experiencing over 30% year-over-year growth in annual recurring revenue due to its AI-driven offerings, is expected to enhance HPE's product revenue growth, projected to increase between 11% and 14% CAGR in the coming years. Additionally, HPE's substantial focus on AI systems, which currently contribute approximately 20% of product revenue and are anticipated to grow, positions the company favorably within a targeted total addressable market of $692 billion in AI-related infrastructure.

Hewlett Packard Enterprise (HPE) has experienced a notable decline in server market share, losing approximately 13% over the last decade, with an additional 18% drop in the enterprise-only segment, which has raised concerns about its competitive position, particularly against rivals like Lenovo. The company's transition to an as-a-Service model, while potentially beneficial in the long term, is expected to contribute less than 10% to future revenues for several years, which could hinder financial growth and investor confidence. Compounded by ongoing execution issues and a persistently lower margin profile compared to peers, HPE’s overall market exposure and lack of compelling product offerings further contribute to a negative outlook for its stock.