Argus Sees More Upside for HPE, Citing Temporary Server Softness and AI Momentum

Core Insights - Hewlett Packard Enterprise Company (NYSE:HPE) is recognized as one of the 11 Best Low Priced Dividend Stocks to Buy according to analysts [1] - Argus has raised its price target for HPE from $25 to $30 while maintaining a Buy rating, citing temporary softness in server sales and potential growth in the AI market [2] - HPE reported Q4 2025 revenues of $9.7 billion, a 14% increase year-over-year, with an annualized revenue run rate of $3.2 billion, reflecting a 63% increase from the previous year [3] Financial Performance - The company demonstrated improved cash generation with operating cash flow rising to $2.5 billion and free cash flow reaching $1.9 billion [4] - HPE returned $271 million to shareholders through dividends and buybacks [4] Strategic Developments - HPE and Nvidia launched a new AI factory lab in Grenoble, France, aimed at helping customers test and validate performance on EU-based infrastructure [5] - The partnership expanded AI factory offerings to include HPE Junior Networking on-ramp and data center interconnection solutions [5] Company Overview - HPE is a global IT provider known for its servers, storage systems, networking solutions, hybrid-cloud offerings, and consulting services [6]