HPE shares rose Monday following a Morgan Stanley upgrade to overweight from equal weight. The investment firm identified HPE as its top pick for the enterprise infrastructure cycle.
Morgan Stanley lowered its price target to $69 from $71. This new target implies a nearly 30% upside from the previous closing price. Analysts cited growth potential across servers, storage, and networking segments.
The bank admitted its previous cautious stance on enterprise hardware was misplaced. Research points to a strengthening hardware cycle driven by technology refreshes and sustained AI infrastructure demand.
The firm highlighted the acquisition of Juniper Networks as a key driver for future growth. This deal aims to expand HPE's competitive moat and create a high-margin networking business.