HP Enterprise Stock Rallies As Analysts Boost Price Targets After Earnings | Global News Avenue

Hewlett Packard Enterprise (HP) The stock price rose sharply after the company’s performance was better than expected Fiscal fourth quarter results Analysts raised price targets.

Stifel reiterated its buy rating on the server maker and raised its price target to $25 from $22, saying the company’s shares are “undervalued” amid “strong demand.”Artificial Intelligence (AI)) servers and legacy servers are showing signs of recovery. “

Morgan Stanley raised its rating on Hewlett Packard Enterprise to “overweight” from “equal” and raised its target price to $28 from $23. The company noted that HP Enterprise outperformed last quarter’s performance “driven by artificial intelligence servers.” AI server revenue reached $1.5 billion, in line with expectations.

Hewlett Packard Enterprise’s fiscal fourth-quarter revenue hit a record high of $8.5 billion, up 15% year-on-year and above the analyst consensus compiled by Visible Alpha. Net income was $1.34 billion, or 99 cents a share, up from $642 million, or 49 cents a share, a year ago.

HP Enterprise Server revenue jumped 32% to $4.7 billion, beating analysts’ expectations. In October, the company was unveiled new server Powered by Advanced Micro Devices (AMD) chip, designed to support AI clusters to perform tasks such as training large language models.

Shares of Hewlett Packard Enterprise rose more than 10% to $24.01 in intraday trading on Friday, a gain of more than 40% in 2024.