After Raymond James upgraded the IT provider, Hewlett Packard Enterprise (HPE, Financials) shares gained 2.9% in Monday's early market trading, highlighting their projected Juniper Networks (JNPR, Financials) merger and advancement in artificial intelligence platforms.
From "Outperform," analyst Simon Leopold upgraded HPE to "Strong Buy," and raised the price target from $23 to $29. Refined sales projections isolate artificial intelligence systems from conventional servers, influencing fiscal 2025 sales projections.
Leopold anticipates the Juniper acquisition will be completed on schedule, boosting stock multiples. Accelerated servers among HPE's AI-related products are estimated to contribute 18% of fiscal 2025 sales at $5.9 billion and 21% at $7.4 billion by 2026.
Accelerated servers and other HPE AI-related products are estimated to contribute 18% of fiscal 2025 sales at $5.9 billion and 21% at $7.4 billion by 2026.
Leopold said that while the company is trailing Dell (DELL, Financials) in growth, its more varied customer base lessens volatility. HPE's AI efforts and Juniper's third-quarter results point favorably to future growth.
HPE once projected the Juniper transaction to be completed either early 2025 or later this year.