10:55 AM EDT, 06/04/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our Buy rating and lift our 12-month target to $21 from $18, 9.5x our FY 26 EPS view, reflecting HPE's strong AI positioning despite execution challenges. We cut FY 25 EPS to $1.87 from $1.93 but keep FY 26 at $2.19. HPE posted Q2 Non-GAAP EPS of $0.38, beating consensus by $0.05, with revenue up 6% to $7.63B due to growth across all segments. Server margins improved sequentially to 5.9% as management addressed Q1 execution issues through pricing analytics and inventory management. ARR surged 46% to $2.2B, reflecting the successful GreenLake transformation. While macro uncertainties persist, we expect Server margins to reach ~10% by Q4 and maintain +$1B FCF guidance. The pending Juniper acquisition should deliver $450M in synergies, complementing ongoing cost reduction efforts. Strong AI order momentum and accelerating enterprise adoption support our positive outlook despite near-term headwinds.