02:45 PM EDT, 06/02/2026 (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 sharply lift our price target from $28 to $64, based on 16x our FY 27 (Oct.) EPS view, above HPE's three-year average (~9x) on AI tailwinds. We lift our FY 26 EPS view by $1.05 to $3.49 and FY 27's by $1.19 to $4.00. Q2 results (sales +40%, non-GAAP EPS +108%) shattered expectations, along with FY 26's guidance (non-GAAP EPS expected at $3.40, 42% above HPE's prior view). We view the company's initial FY 27 guidance (sales up ~10%, EPS up ~14%) as particularly impressive given ongoing supply constraints, and combined with management's comments on no clear demand pull-in and traditional server units increasing in Q2 despite large ASP increases, we see HPE demonstrating durable pricing power that speaks to the increasing value of its end-to-end offerings (storage, server, networking) following the Juniper acquisition last year. AI demand is also increasingly broadening into enterprise/sovereign spaces, which contributed to the majority of HPE's $5.9B AI systems backlog (+84% Y/Y).