JPMorgan Just Hiked Hewlett Packard Enterprise Price Target to $37: Memory Reversal Powers IT Hardware Rally

JPMorgan conscionable raised its terms people connected Hewlett Packard Enterprise (NYSE:HPE) to $37 from $27, maintaining an Overweight rating. The steadfast tied the telephone to a reversal of memory-related concerns that has powered the caller rally successful the IT hardware group. For prudent investors, the terms people rise signals that Wall Street sees much country to tally arsenic borderline headwinds slice up of net season.

JPMorgan besides paired the enactment with a akin determination connected Dell Technologies (NYSE:DELL), lifting that people to $280 from $205, framing the full IT hardware radical arsenic a synchronized opportunity.

The Analyst's Case

JPMorgan is astir affirmative connected Dell Technologies and Hewlett Packard Enterprise heading into upcoming net prints, expecting net estimation increases to reenforce medium-term net maturation outlooks. The steadfast sees shares returning to valuation multiples "more due for the medium-term net maturation outlook."

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The halfway thesis: earlier worries that rising DRAM and NAND prices would compress server gross margins person eased arsenic proviso caught up with demand. Micron Technology (NASDAQ:MU) precocious posted Q1 FY2026 gross of $13.64 billion, up 57% twelvemonth implicit year, validating that proviso is rebalancing alternatively than choking disconnected downstream margins.

Company Snapshot

HPE's Q1 FY2026 people already showed the operating leverage. Revenue deed $9.30 billion, up 18% twelvemonth implicit year, with non-GAAP EPS of $0.65, beating guidance of $0.57 to $0.61. The Networking segment, lifted by the Juniper Networks integration, surged 152% twelvemonth implicit twelvemonth to $2.71 billion.

CEO Antonio Neri stated that HPE delivered "one of our astir profitable quarters connected record" with orders expanding treble digits twelvemonth implicit twelvemonth crossed each segments. Management raised FY2026 guidance to 17% to 22% gross maturation and escaped currency travel of astatine slightest $2 billion.