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Evaluating Hewlett Packard: Insights From 5 Financial Analysts
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Evaluating Hewlett Packard: Insights From 5 Financial Analysts
Apr 15, 2024 1:26 PM

Across the recent three months, 5 analysts have shared their insights on Hewlett Packard ( HPE ) , expressing a variety of opinions spanning from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 0 4 0 0
Last 30D 0 0 1 0 0
1M Ago 0 0 0 0 0
2M Ago 1 0 3 0 0
3M Ago 0 0 0 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $17.2, a high estimate of $19.00, and a low estimate of $14.00. Experiencing a 5.49% decline, the current average is now lower than the previous average price target of $18.20.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Hewlett Packard ( HPE ) is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Meta Marshall Morgan Stanley Raises Equal-Weight $19.00 $16.00
Matthew Sheerin Stifel Lowers Buy $18.00 $20.00
Aaron Rakers Wells Fargo Lowers Equal-Weight $17.00 $21.00
Amit Daryanani Evercore ISI Group Lowers In-Line $18.00 $19.00
Tim Long Barclays Lowers Equal-Weight $14.00 $15.00

Key Insights:

Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Hewlett Packard ( HPE ). This information provides a snapshot of how analysts perceive the current state of the company.

Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Hewlett Packard ( HPE ) compared to the broader market.

Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Hewlett Packard's ( HPE ) stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Hewlett Packard's ( HPE ) market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Hewlett Packard ( HPE ) analyst ratings.

Unveiling the Story Behind Hewlett Packard

Hewlett Packard Enterprise ( HPE ) is an information technology vendor that provides hardware and software to enterprises. Its primary product lines are compute servers, storage arrays, and networking equipment; it also has a high-performance computing business. HPE's stated goal is to be a complete edge-to-cloud company, and its portfolio enables hybrid clouds and hyperconverged infrastructure. It uses a primarily outsourced manufacturing model and employs 60,000 people worldwide.

Hewlett Packard: Financial Performance Dissected

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Negative Revenue Trend: Examining Hewlett Packard's ( HPE ) financials over 3 months reveals challenges. As of 31 January, 2024, the company experienced a decline of approximately -13.5% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 5.73%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Hewlett Packard's ( HPE ) ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.82%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Hewlett Packard's ( HPE ) ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.67%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Hewlett Packard's ( HPE ) debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.6, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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