European Investor
10 Aug 2026, 14:07
HPE Stock Rises 5% After Morgan Stanley Upgrades Shares to Overweight
Hewlett Packard Enterprise (NYSE: HPE) shares rose about 5% Monday after Morgan Stanley upgraded the enterprise technology company, providing a fresh catalyst for the stock.
Morgan Stanley analyst Meta Marshall upgraded HPE to Overweight from Equal Weight. The firm slightly lowered its price target to $69 from $71, but the new target remains well above HPE's recent share price of $55.44.
At $69, Morgan Stanley's target implies approximately 24% upside from the stock's current level.
Morgan Stanley Turns More Bullish on HPE
The upgrade is notable because it comes despite the modest reduction in Morgan Stanley's price target. Moving HPE to Overweight indicates that the firm sees the stock's risk-reward profile as increasingly attractive at current levels.
HPE has also gained greater investor attention through its exposure to AI infrastructure, enterprise servers, networking and data-center spending. These areas remain important as companies continue investing in the computing and networking capacity required for artificial intelligence workloads.
The analyst action may also reinforce the broader investment case around HPE's participation in AI-related infrastructure spending.
Investors will now be watching whether improving demand for AI systems, networking and enterprise infrastructure can translate into stronger revenue and earnings growth and support Morgan Stanley's more bullish stance.
Hewlett Packard Enterprise (NYSE: HPE) shares rose about 5% Monday after Morgan Stanley upgraded the enterprise technology company, providing a fresh catalyst for the stock.
Morgan Stanley analyst Meta Marshall upgraded HPE to Overweight from Equal Weight. The firm slightly lowered its price target to $69 from $71, but the new target remains well above HPE's recent share price of $55.44.
At $69, Morgan Stanley's target implies approximately 24% upside from the stock's current level.
Morgan Stanley Turns More Bullish on HPE
The upgrade is notable because it comes despite the modest reduction in Morgan Stanley's price target. Moving HPE to Overweight indicates that the firm sees the stock's risk-reward profile as increasingly attractive at current levels.
HPE has also gained greater investor attention through its exposure to AI infrastructure, enterprise servers, networking and data-center spending. These areas remain important as companies continue investing in the computing and networking capacity required for artificial intelligence workloads.
The analyst action may also reinforce the broader investment case around HPE's participation in AI-related infrastructure spending.
Investors will now be watching whether improving demand for AI systems, networking and enterprise infrastructure can translate into stronger revenue and earnings growth and support Morgan Stanley's more bullish stance.
