02:55 PM EDT, 06/05/2024 (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 lift our 12-month target by $2 to $19, on a P/E of 10x our CY 24 EPS view of $1.92, below HPE's five-year forward historical average. We cut our FY 24 EPS view to $1.90 from $1.97 and keep FY 25's at $2.08. HPE posted Q2 EPS of $0.42 vs. $0.52, a $0.03 consensus beat. Sales rose 3%, better than expected, driven by more than a doubling of HPE's AI systems revenue Q/Q to over $900M. This was led by strong AI customer demand and improved GPU availability. Server revenue increased 18% on strength in both AI systems and traditional servers, partly offset by declines of 19% in Intelligent Edge on tough comps from backlog consumptions and a 9% drop in Hybrid Cloud. We like the strong demand for HPE GreenLake, with customer adoption growing 9% Q/Q, and we expect continued revenue growth driven by increased AI system demand and ongoing improvement in the traditional infrastructure market. We expect 2H 24 to show server sales improvement as GPU supplies recover, but we remain cautious of HPE's net debt of $7.7B.