:max_bytes(150000):strip_icc()/GettyImages-2218096598-a775a5b046cb43e8ab84c71ac20ea719.jpg "Hewlett Packard Enterprise Stock Gets Morgan Stanley Upgrade on AI Spending Boom")
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Key Takeaways
- Hewlett Packard Enterprise shares gained when Morgan Stanley upgraded the stock from equal-weight to overweight.
- The analysts also increased the price target by $6 to $28.
- Morgan Stanley pointed to “healthy enterprise spending” for anything artificial intelligence- and network-related.
Hewlett Packard Enterprise (HPE) shares advanced Thursday on an upgrade by Morgan Stanley, which sees increased corporate spending on the computer processing hardware maker’s artificial intelligence (AI) and other products.
Morgan Stanley raised its rating to “overweight” from “equal-weight,” and boosted the price target to $28 from $22.
In a note to clients, the analysts noted that “our checks signaled healthy enterprise spending across the board in the quarter, led by anything AI compute or networking related, followed by client devices (strong PC refresh), and then servers/storage, with networking growth inflecting positively for the first time in several quarters.”
They added that their research “leaves us positive on the potential for top and bottom line outperformance in the July quarter across the group.”
Along with the Hewlett Packard Enterprise moves, Morgan Stanley also increased the price targets for Dell Technologies (DELL) and NetApp (NTAP).
With today’s gains of more than 3%, shares of Hewlett Packard Enterprise moved into positive territory this year.
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