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Morgan Stanley Raises HPE Price Target to $71 After Earnings, Keeps Equalweight

By Freedom251 Team · · 2 min read

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Morgan Stanley raised its reported Hewlett Packard Enterprise (HPE) price target to $71 from $33 after the company’s fiscal second-quarter 2026 results, but kept its Equalweight rating. The move was a higher target, not a reported rating upgrade or a buy recommendation.

What Morgan Stanley reportedly changed

Investing.com reported on June 2, 2026, that Morgan Stanley lifted its HPE target to $71 from $33 while maintaining Equalweight. The report attributed the change to stronger server pricing and orders than the firm had seen 90 days earlier, prompting positive revisions to its fiscal 2026 and fiscal 2027 earnings-per-share estimates. Investing.com’s June 2 report is secondary coverage; Morgan Stanley’s original research note was not available for independent review.

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Why earnings mattered

HPE announced results on June 1, 2026, for the quarter ended April 30. It reported revenue of $10.7 billion, GAAP diluted EPS of $0.44, and non-GAAP diluted EPS of $0.79. The non-GAAP figure exceeded the company’s prior outlook range of $0.51–$0.55, and HPE raised its fiscal 2026 guidance. HPE’s results announcement contains the company’s figures and guidance.

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HPE President and CEO Antonio Neri said customers were investing in infrastructure modernization and scaling AI, while highlighting the combined networking portfolio. CFO Marie Myers said the company was raising fiscal 2026 guidance and introducing a fiscal 2027 financial growth framework. These are management’s explanations of the business outlook, not independent confirmation of the analyst report’s assumptions. Both statements appear in HPE’s June 1 release.

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How the reported target was valued

According to the Investing.com account, Morgan Stanley’s $71 target equated to 17 times its new fiscal 2027 EPS estimate of $4.16. That multiple and estimate explain the report’s valuation framing; they are not company guidance or a guaranteed future share price.

What the report says remains uncertain

The same report said Morgan Stanley viewed the durability of enterprise demand beyond fiscal 2027 as unclear. In other words, the key debate was whether stronger server pricing and orders could persist as a multi-year demand cycle. The higher target therefore came with a stated uncertainty about demand after the estimate horizon, rather than an assertion that growth would continue indefinitely.

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Did Morgan Stanley upgrade HPE?

No rating upgrade was reported. Morgan Stanley raised its price target but retained Equalweight. A target describes an analyst’s valuation view; the rating is a separate judgment, so a higher target alone does not establish a bullish recommendation.

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How to compare this call with other analyst views

Comparing targets alone can obscure why analysts differ. For a useful comparison, check:

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  • Rating: whether the analyst maintained, upgraded, or downgraded the stock.
  • Estimate horizon: the fiscal year used for earnings assumptions.
  • Operating assumptions: expectations for server pricing, order growth, and demand durability.
  • Valuation: the earnings multiple implied by the target and the EPS estimate used to calculate it.

For this Morgan Stanley view, the reported combination was a $71 target, Equalweight, a 17-times multiple on $4.16 of FY2027 EPS, and uncertainty about demand beyond FY2027. All those details are attributed to Investing.com’s secondary report, not a reviewed Morgan Stanley note. Targets and ratings can change; no current HPE share price or consensus target is established here.

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analyst price targetEarningsHewlett Packard EnterpriseHPEMorgan Stanley

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