Morgan Stanley Raised HPE Stock Price Target
The firm increased its target to $72 following strong growth in the company's networking division.
Updated on Oct. 7, 2026 in Data Centers
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Morgan Stanley boosted its price target for Hewlett Packard Enterprise to $72, citing optimism surrounding the company's networking market growth. This move follows a strong third quarter in which the company reported $12.21 billion in revenue.
Why it matters
The upgrade reflects confidence in Hewlett Packard Enterprise's integration of Juniper Networks and the high demand for its Helios AI-focused server racks. These hardware solutions are central to the company's effort to reshape technology stacks for artificial intelligence.
Hewlett Packard Enterprise reported $12.21 billion in third-quarter revenue, representing a 33.68% year-over-year increase. The firm also secured a $1.2 billion order from Vultr for Helios cabinets, which integrate AI servers with networking switches.
The players
Hewlett Packard Enterprise
This is a global information technology company that provides servers, storage, and networking hardware solutions.
Morgan Stanley
This is a multinational investment bank and financial services company that provides equity research to investors.
Juniper Networks
This company specializes in networking products including routers, switches, and network security systems.
Vultr
This is a cloud computing platform provider that recently placed a major order for data center infrastructure.
The details
Hewlett Packard Enterprise has aggressively expanded its portfolio through the $14 billion acquisition of Juniper Networks, completed in July 2025. This strategy aims to capitalize on an 18% projected annual growth rate for the networking market through 2029.
Timeline
July 2025: Hewlett Packard Enterprise finalized the acquisition of Juniper Networks.
September 30, 2026: The company hosted its Networking Investor Day and confirmed the Vultr order.
October 2, 2026: Shares of Hewlett Packard Enterprise climbed 7.36% following the target increase.
Fiscal 2029: This marks the conclusion of the company's current networking growth outlook projection.
The Tech Race
The aggressive deployment of the Helios cabinet server system signals a shift toward specialized AI infrastructure that replaces traditional enterprise networking hardware. This strategy positions Hewlett Packard Enterprise to compete more effectively against legacy data center incumbents.
The stock's 186.84% year-to-date gain has significantly altered portfolio valuations for long-term investors. Customers may see faster deployment times for AI-ready data center hardware as the company scales production of its Helios racks.
The takeaway
Hewlett Packard Enterprise's transition toward AI-optimized networking hardware has become the primary driver of its recent valuation surge. Investors and tech buyers should monitor the firm's ability to maintain these growth rates as it integrates its large-scale acquisitions.
Further reading
For more information on the infrastructure sector, see our latest coverage on Data Centers.
Source note: This article includes information reported by MyrtleBeachOnline.
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