Hewlett Packard Enterprise (HPE) saw a premarket rise of over 4% after being added to Evercore’s TAP list with an Outperform rating ahead of its second-quarter results. Analysts are anticipating the results for the April quarter, with mixed expectations. While AI revenue is expected to surpass expectations, there are concerns that HPE may fall slightly short of sales and EPS forecasts. The company’s performance in networking and computing sectors will be crucial, with a focus on rising AI expectations. Possible risks to fiscal 2024 guidance and share loss in the Edge business were also highlighted.
Analysts believe that HPE needs to capitalize on its AI opportunity to influence investor sentiment positively. Updates on the H3C divestment and pending acquisition of Juniper will be closely watched. Weakness in network demand and potential stock loss present challenges for the company in the upcoming quarter and beyond, leading to a downward revision in top-line growth estimates for FY24.
Overall, HPE currently holds a Hold rating in Busca Alpha’s Quant Rating system, which consistently outperforms the market. The average rating from Seeking Alpha authors and Wall Street analysts also reflects a Hold sentiment towards the stock. Investors are advised to closely monitor HPE’s performance in the AI sector and the progress of key acquisitions for future insights into the company’s growth prospects and market positioning.
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https://seekingalpha.com/news/4109819-hewlett-packard-rises-after-evercore-adds-to-tactical-outperform-list-ahead-of-earnings
