Hewlett Packard Enterprise 2027 Estimates Retain Upward Bias, BofA Says

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Hewlett Packard Enterprise's (HPE) 2027 estimates retain an upward bias because multi-year supply commitments and orders are ahead of revenue, with restructuring efforts and synergies from the Juniper acquisition slated to drive free cash flow, BofA Securities said in a Thursday note.

On Wednesday, the company provided its 2027 outlook and now expects revenue growth in the range of 13% to 17%, EPS of $4.40 to $4.60, along with at least $5 billion in free cash flow.

BofA said the company will see a higher mix of AI revenue in 2027, which is expected to drive negative gross margin leverage. Hewlett Packard Enterprise is expected to control its operating expenses, which, in turn, will drive operating margin leverage.

The investment firm increased its 2026 revenue and earnings per share estimates to $46.6 billion and $3.83 from $45.3 billion and $3.47.

BofA raised its price target on the company's stock to $88 from $82 and maintained its buy rating.

Shares of Hewlett Packard Enterprise were down nearly 7% in Thursday trading.

Price: 48.26, Change: -3.57, Percent Change: -6.89

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