Barclays downgrades HPE to Equal Weight, cuts price target to $77, shares tumble
Barclays lowered its rating on Hewlett Packard Enterprise to Equal Weight and reduced its price target from $83 to $77. The downgrade followed HPE's recent earnings release, which showed quarterly revenue of $12.2 billion, with servers accounting for about 55.7% of sales. The news sent the stock down 5.1% to 6.3%, closing at $59.15. Barclays warned that the company’s AI‑driven growth may be overstated and could be tied to short‑lived commodity trends.
Why it matters
The lower rating and price target signal reduced upside potential for investors, and the share decline reflects immediate market reaction. The downgrade also raises questions about the sustainability of HPE’s AI revenue growth, which could affect future earnings expectations.
Key facts
- 1Barclays downgraded HPE to Equal Weight. tipranks.com
- 2Barclays cut its price target to $77 from $83. tipranks.com
- 3HPE shares fell 5.12% after the downgrade. tipranks.com
- 4HPE shares fell 6.3% to $59.15 on October 15. gurufocus.com
- 5Quarterly revenue was $12.2 billion. gurufocus.com
- 6Servers contributed 55.7% of sales. gurufocus.com
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.