Morgan Stanley upgraded its recommendation on Hewlett Packard Enterprise from equal-weight to overweight, despite lowering its price target to $69 from $71, implying roughly 30% upside from Friday’s close. Analyst Erik Woodring acknowledged the bank had been wrong in its previous view that record component inflation would quickly stymie a recovery in hardware spending. Enterprises are now accelerating purchases of PCs, servers and storage arrays to lock in favorable pricing before further increases, a phenomenon described as the « Fear of Missing Procurement ». The cyclical infrastructure upcycle is expected to continue, driven by booming AI data centers.
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