Hewlett Packard Enterprise Impressed With Strong Quarterly Results and the Growth Drivers AI and Cloud. Evercore ISI Adds the Stock to the Tactical Outperform List. Price Target: $28 (+30%)

HP Enterprise (HPE) impressed in July with strong quarterly results. The server business benefited from high AI demand, while Intelligent Edge grew by 7% to $1.2 billion and Hybrid Cloud by 13% to $1.5 billion. Revenue and earnings per share exceeded expectations. HPE is increasingly focused on building "AI Factories" – AI data centers as the basis for the next wave of productivity. A strategic milestone is the approved acquisition of Juniper Networks: it doubles the networking business, integrates AI expertise, and strengthens the position against...