CNBC Pro provided live coverage of analyst calls and Wall Street discussions on Wednesday. In particular, an electric vehicle manufacturer and an enterprise technology firm were the focus of analyst commentary.
Piper Sandler adjusted its price target for Tesla, increasing it to $310. Concurrently, Barclays upgraded Hewlett Packard Enterprise to an overweight rating. Details of these updates are as follows:
5:42 a.m.: Piper Sandler Raises Price Target on Tesla
Piper Sandler anticipates that Tesla may exceed previous vehicle sales expectations. Analyst Alexander Potter increased both third-quarter and full-year vehicle delivery forecasts for Tesla. Consequently, Potter raised the price target for Tesla shares from $300 to $310, indicating a potential 22% increase from the market close on Wednesday. He also reaffirmed his overweight rating on the stock.
Potter is optimistic about Tesla’s performance in the third quarter, particularly in China’s market, and the impact of the Cybertruck on U.S. demand. He noted that, unlike other regions, China provides weekly registration data, leading to a high confidence level that Tesla will deliver over 175,000 units in Q3. In the U.S., sales data within the quarter are less accurate due to third-party estimates, but Potter believes an increase from the previous quarter is achievable with the help of the Cybertruck. As of Wednesday premarket trading, Tesla shares were down over 1%, with a 2% increase recorded for the year.
5:42 a.m.: Barclays Upgrades Hewlett Packard Enterprise
Barclays took a bullish stance on Hewlett Packard Enterprise, boosted by increasing demand for artificial intelligence servers. The bank upgraded the company from equal weight to overweight, setting a price target of $24, up from $20, which suggests a 27.1% potential upside.
Analyst Tim Long highlighted that Hewlett Packard Enterprise is poised to see continued growth in AI server revenues and improvements in storage, along with benefits from its acquisition of Juniper Networks for approximately $14 billion. This acquisition is anticipated to close by the end of the year. Long also observed early signs of an enterprise recovery, marking Hewlett Packard Enterprise as a promising investment in this trend due to the stock’s lack of an AI premium compared to other hardware companies.
While Hewlett Packard Enterprise’s stock has increased by 11.2% this year, it still trails behind the Technology Select Sector SPDR fund, which has risen by 16%.
These evaluations reflect the latest insights from industry analysts on key technology stocks.
