Hewlett Packard Enterprise (HPE) shares surged Tuesday after Bank of America upgraded the stock, saying the tech firm has "many catalysts ahead," including benefits from need for more 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) products.

The bank raised its rating to "buy" from "neutral," and lifted the price target to $24 from $21.

Analysts wrote in a note to clients that because of its "decades of expertise in liquid cooling (CRAY systems) and increased adoption of supercomputing, HPE will be able to command a key position in AI adoption" for large organizations and governments.

BofAꦫ Believes HP♈E Will Make Significant Cost Cuts Under New CFO

Bank of America also believes that the company will make significant cost cuts under the leadership of new 澳洲幸运5官方开奖结果体彩网:Chief Financial Officer (CFO) Marie Myers, and will see revenue and increased cost synergies with its planned purchase of Juniper Networks (JNPR). HPE announced the $14 billion acquisition of Juniper last January.

Other positives cited by the analysts were the "cyclical recovery across servers, storage, and particularly networking," and 澳洲幸运5官方开奖结果体彩网:profit margin recovery for high performance computing.

Shares of Hewlett Packard Enterprise, which entered Tuesday up just 1.5% on the year, rose 5% to $18.09 in early afternoon trading.