JPMorgan Just Hiked Hewlett Packard Enterprise Price Target to $37: Memory Reversal Powers IT Hardware Rally

JPMorgan raised its price target for Hewlett Packard Enterprise to $37 from $27 while keeping an Overweight rating. The change is tied to a reversal of memory-related concerns that have driven the recent rally in IT hardware. JPMorgan also lifted its Dell Technologies target to $280 from $205, treating the hardware group as a synchronized opportunity. The firm expects earnings estimate increases to reinforce medium-term earnings growth and to bring shares back to valuation multiples more appropriate for that outlook. Earlier worries about rising DRAM and NAND compressing server gross margins have eased as supply rebalanced with demand. HPE reported Q1 FY2026 revenue of $9.30 billion, non-GAAP EPS of $0.65, and strong networking growth, with orders rising double digits and guidance raised for FY2026.

"JPMorgan just raised its price target on Hewlett Packard Enterprise ( NYSE:HPE | HPE Price Prediction) to $37 from $27, maintaining an Overweight rating. The firm tied the call to a reversal of memory-related concerns that has powered the recent rally in the IT hardware group. For prudent investors, the price target raise signals that Wall Street sees more room to run as margin headwinds fade ahead of earnings season."

"JPMorgan is most positive on Dell Technologies and Hewlett Packard Enterprise heading into upcoming earnings prints, expecting earnings estimate increases to reinforce medium-term earnings growth outlooks. The firm sees shares returning to valuation multiples "more appropriate for the medium-term earnings growth outlook." The core thesis: earlier worries that rising DRAM and NAND prices would compress server gross margins have eased as supply caught up with demand."

"Micron Technology ( NASDAQ:MU) recently posted Q1 FY2026 revenue of $13.64 billion, up 57% year over year, validating that supply is rebalancing rather than choking off downstream margins. HPE's Q1 FY2026 print already showed the operating leverage. Revenue hit $9.30 billion, up 18% year over year, with non-GAAP EPS of $0.65, beating guidance of $0.57 to $0.61."

"CEO Antonio Neri stated that HPE delivered "one of our most profitable quarters on record" with orders increasing double digits year over year across all segments. Management raised FY2026 guidance to 17% to 22% revenue growth and free cash flow of at least $2 billion. The Networking segment, lifted by the Juniper Networks integration, surged 152% year over year to $2.71 billion."

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