Hewlett Packard Enterprise (HPE) Stock Drops 6%. Here’s Why Evercore Hit the Brakes
TLDR
- HPE stock fell around 6% in Monday’s premarket, trading at $58.30
- Evercore ISI downgraded HPE to In Line from Outperform, citing recent stock appreciation
- HPE is up 158.5% year-to-date vs the S&P 500’s 11.9% gain
- The drop is part of a broader selloff in AI-linked tech stocks
- Analyst price targets range from $54 (Wells Fargo) to $86 (Raymond James)
Hewlett Packard Enterprise (HPE) dropped around 6% in Monday’s premarket, trading at $58.30, as a downgrade from Evercore ISI landed alongside a wider tech selloff.
Hewlett Packard Enterprise Company, HPE
Evercore ISI cut its rating on HPE to In Line from Outperform, keeping its price target at $65. The firm said the downgrade reflects how much the stock has already run up, not a problem with the business itself.
HPE closed at $62.08 on September 11, up 158.5% year-to-date. The S&P 500 has gained just 11.9% over the same period. The stock is also up 37.6% quarter-to-date versus the S&P 500’s 2.1% rise.
Evercore noted that HPE now trades at 13 times fiscal 2027 price-to-earnings, compared to its five-year average of 8 times. The firm said the stock looks fairly valued here, with fewer near-term catalysts to push the multiple higher.
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