Key Takeaways

Hewlett Packard Enterprise ( HPE ) will report fiscal fourth-quarter earnings after the market closes Thursday, with analysts softly bullish overall ahead of the company's results.

Of the 10 brokers who analyze HPE and are tracked by Visible Alpha, four have a “buy” or equivalent rating for the server maker, and six maintain “hold” ratings. The consensus price target is nearly $23, which is about 8% above the stock’s price shortly after the opening bell Monday.

Wall Street expects HPE to report revenue of $8.23 billion, up 12% year-over-year. Net income is protected to come in at $884.7 million, or 66 cents per share, compared with $642 million, or 49 cents a share, a year ago.

BofA Analysts Bullish on 2025 AI Server Market

Bank of America (BofA) analysts are among those watching the company who are more optimistic, reiterating their “buy” rating and upping their price target to $26 from $24 in early November. The bank's securities analysts expect HPE’s server revenue for the latest quarter to grow 33% to $4.8 billion, slightly above the analyst consensus, and they are bullish on the artificial intelligence (AI) server market in 2025.

In October, HPE unveiled new servers powered by chips from Advanced Micro Devices ( AMD ) and designed to support AI clusters used for tasks like training large language models .

“We model a largely in-line [fourth quarter] but expect [the first quarter of fiscal 2025] to be modestly above Street given momentum in AI,” BofA analysts said.

Shares of HPE were up nearly 1.5% at $21.53 by midday Monday and have risen about 27% in 2024.