HPE Upgraded at Morgan Stanley on Enterprise Infrastructure Spending Cycle -- Market Talk

1319 ET - Businesses are likely to continue pulling forward their spending on servers and storage arrays for at least a couple of years, Morgan Stanley analysts write in a note upgrading HPE, formerly known as Hewlett Packard Enterprise, to overweight. While accelerated enterprise spending won't last forever, and investors should be cautious as estimate revisions hit their peaks, Morgan Stanley's checks, surveys and analysis indicate "an infrastructure cycle that is proving both stronger and more durable than we previously anticipated," the analysts write. "While execution remains the key risk, we believe HPE now offers the best combination of earnings upside, valuation support and re-rating potential within our enterprise infrastructure OEM group." Shares gain 3.7% to extend this year's gain to 130%. (elias.schisgall@wsj.com)

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August 10, 2026 13:19 ET (17:19 GMT)