Hewlett-Packard Enterprise Co (NYSE:HPE) is seeing record levels after reporting better-than-expected second quarter fiscal results and positive third quarter fiscal and annual forecasts. The demand for AI-optimized servers played a significant role in these results, leading to at least 10 analysts increasing their price targets for the stock.
The stock has surged by 11.9% to $19.70, hitting an all-time high of $20.43. This bullish trend has propelled the stock up by 16.6% since the beginning of the year, making it one of the most popular options in trading pools. HPE has already seen 100,000 calls and 49,000 trades, which is significantly higher than its average daily options volume. Notably, the August 17 put contract is the most popular, with new positions being opened.
Despite the strong performance of the stock, 11 out of 13 analysts still maintain a “hold” rating for HPE. Some brokerages believe that the stock’s potential growth prospects may already be reflected in its current price. Analysts from Bernstein’s coverage mentioned that both HPE and Dell Technologies could experience robust shipments in the upcoming quarters as they fulfill backorders, depending on customers’ willingness to accept early deliveries.
In conclusion, HPE’s impressive financial results, positive forecasts, and growing demand for AI-optimized servers have led to a significant increase in its stock price. With analysts raising their price targets and the stock hitting record levels, investors are closely monitoring its performance and potential for future growth.
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https://www.schaeffersresearch.com/content/news/2024/06/05/hewlett-packard-stock-soars-post-earnings-record-high