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Hewlett Packard Enterprise is rated Strong Buy with a $49.73 target, driven by robust EBITDA growth and improved competitiveness post-Juniper acquisition.

We expect Networking and Server segments to drive EBITDA, with Networking benefiting from Juniper’s higher-margin products and cost synergies.

Despite strong fundamentals, we do not expect HPE to meet its 2.0x net debt/EBITDA target by 2027.

Key risks include intense competition in external OEM storage, but margin expansion and cost initiatives should support long-term value creation.

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