HPE Stock is Downgraded After Rising 159% This Year. Why?
Dow Jones
Yesterday
Shares of Hewlett Packard Enterprise have soared this year and that outperformance was the reason why the stock was downgraded by a Wall Street firm.
HPE stock declined 6.8% to $57.78 in premarket trading on Monday after ending Friday up more than 12%. Shares have surged about 159% this year as big tech companies have been spending big on artificial intelligence, boosting demand for hardware that HPE manufactures.
Analysts at Evercore noted that the stock's strong performance this year hasn't left much more upside and so it downgraded HPE to In Line from Outperform. The firm, however, kept its price target of $65 unchanged.
"We believe shares are fairly valued at current levels," Evercore ISI analyst Amit Daryanani wrote, adding that there likely aren't more near-term catalysts.
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