Hewlett Packard Enterprise stays a buy amid strong AI demand and $5B AI backlog, with 12.6% price upside by 2027.

Hewlett Packard Enterprise (HPE) is considered a buy due to growing demand for AI infrastructure and a substantial AI backlog exceeding $5 billion. The recent acquisition of Juniper Networks enhances HPE's networking capabilities, although integration risks and a negative return on equity (ROE) remain concerns. The stock is attractively valued with a forward price-to-earnings ratio of 11.8 and a price target of $32.17 by 2027, implying a potential 12.6% upside. Technical indicators support a bullish trend, while dividend growth remains flat as the company prioritizes reinvestment and share repurchases.