Barclays cuts target for Hewlett Packard Enterprise stock to USD 77.00

Published on 10/20/2026 at 11:52 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Barclays cut its target for Hewlett Packard Enterprise stock from USD 83.00 to USD 77.00 on October 14, 2026. Fiscal third-quarter revenue reached USD 12.21 billion, up 33.70 percent year over year.

Barclays changes its valuation view

Barclays lowered its target from USD 83.00 to USD 77.00 on October 14, 2026.
Fiscal third-quarter revenue reached USD 12.21 billion, up 33.70 percent year over year.
HPE stock trades at EUR 48.86 at 11:45 a.m. CEST at Lang & Schwarz on October 20, 2026.

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Hewlett Packard Enterprise (US42824C1099) stock is trading at EUR 48.86 at Lang & Schwarz on October 20, 2026 at 11:45 a.m. CEST. The latest catalyst is Barclays' October 14 downgrade to Equal Weight, with the target reduced from USD 83.00 to USD 77.00, according to Investing.com.

Barclays questions the valuation

The downgrade was framed as a valuation decision rather than a reduction in Barclays' earnings forecasts. The bank lowered its valuation multiple for fiscal 2028 estimated earnings per share from 14 times to 13 times, while retaining the view that networking remains an important part of HPE's growth story.

That caution followed a sharp run in the stock and concerns that higher memory costs have supported server revenue. Yahoo Finance reported that Barclays left its underlying forecasts unchanged while questioning the pace of an artificial intelligence growth inflection.

What does the downgrade change?

HPE's operating performance still provides a substantial counterweight. Fiscal third-quarter revenue, for the period ended July 31, 2026, reached USD 12.21 billion, an increase of 33.70 percent from the same quarter a year earlier. Networking revenue rose 74.90 percent to USD 2.90 billion, while server revenue increased 35.30 percent to USD 6.80 billion, according to Yahoo Finance.

The chronology shows how expectations have moved. On October 1, 2026, Morgan Stanley raised its target from USD 67.00 to USD 72.00, as reported by MarketBeat. On October 14, Barclays cut its target to USD 77.00 from USD 83.00. On October 19, HPE introduced ProLiant Gen13 servers powered by sixth-generation AMD EPYC processors, according to Yahoo Finance.

Stock price and investor context

For investors, the central question is whether networking growth and new server products can convert strong demand into durable margins. HPE also reported USD 1.00 billion in free cash flow and USD 6.20 billion in cash and cash equivalents for fiscal third quarter 2026, giving the valuation debate a cash-generation counterpoint.

Hewlett Packard Enterprise was trading at EUR 48.86 at Lang & Schwarz on October 20, 2026 at 11:45 a.m. CEST.

The further course of trading is shown by the continuously updated real-time quote of HPE stock.