Deutsche Bank analysts shared their outlook on Hewlett Packard Enterprise Company (NYSE:HPE) ahead of the company’s Q2 earnings result, expecting a strong overall order momentum and record backlog despite uncertainty in the supply chain.
For its as-a-service business, the analysts expect the company to maintain its 2024 ARR target of over $2.3 billion while also focusing on order growth (triple digit growth in the past two quarters) and customer growth and believe $1.1 billion (up 35% year-over-year) is still a reasonable target for ARR exiting 2022.
In the near term, the analysts believe COVID lockdowns could further delay some shipments/installation and put additional pressure on margins, noting that peers’ commentaries on server availability have been mixed. That said, the analysts believe the 2-3% revenue growth and approximately 7% EPS growth for 2022 modeled by Street is likely conservative enough.