At least 10 analysts lifted their price targets today
Shares of Hewlett-Packard Enterprise Co (NYSE:HPE) are soaring to record highs, following the computer hardware name's better-than-expected fiscal second-quarter results and upbeat annual and fiscal third-quarter guidance. Artificial intelligence (AI)-optimized server demand contributed to the results, with at least 10 analysts lifting their price targets today.
At last glance, HPE was up 11.9% to trade at $19.70, after earlier hitting an all-time peak of $20.43. This bull gap to all-time levels has the equity up 16.6% since the start of the year.
Naturally, the stock is one of the most popular in the options pits today. So far, HPE has seen 100,000 calls and 49,000 exchanged, which is already 13 times its overall average daily options volume. The August 17 put is the most popular contract, with new positions being bought to open there.
Of the 13 analysts in coverage, 11 still carry a "hold" rating despite the stock's outperformance. At this point, however, brokerages could be of the mind that HPE's potential tailwinds have already been factored into the price. Bernstein's covering analyst suggested HPE and Dell Technologies could have "very strong shipments over the next quarter or two as they deliver on backlog," depending on if customers would be willing to take deliveries earlier.