Hewlett Packard Enterprise upgraded on AI, Juniper deal

Bank of America Securities upgraded Hewlett Packard Enterprise (HPE) to Buy from Neutral. The firm cites several catalysts for the stock, including how its liquid-cooling technology will be needed as more companies use AI, the potential benefits of the Juniper acquisition, and the stock's valuation.

Market Domination anchors Josh Lipton and Josh Schafer discuss the call in the video above.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Stephanie Mikulich.

Video transcript

Moving on.

Here's another movie.

You should check out B of A security is upgrading Hewlett Packard Enterprise from neutral to buy notes saying the company is well positioned in the A I space because of its liquid cooling technology.

So uh they do like this one shares.

They say look attractive.

The target set at 24 they talk about cost cuts driven by the new CFO who they say had had a proven track record at PQ.

They also highlight a cyclical recovery, they say across servers storage and particularly networking.

Josh, yeah, Josh, they pointed out that valuation there said it's training at about eight times, 2025 earnings estimates that's on the low end of its traditional trading range of 6 to 13 times.

And when you see something like A I possibility in A I queer player and A I cooler and then trading out an attractive valuation.

That is not something we're talking a lot about in the market right now.

So that adds up with how that gets an upgrade, right?

Looking at about 40% on that price target there at 24 you remember HP did recently report results and we saw it come under some pressure on, on weaker than expected margins but b they likes it val is compelling and many ca catalysts ahead.

They say Josh.