HPE stock (NYSE: HPE) has increased by roughly 30% since late September, CEO Antonio Neri believes the tech stock is still being offered at a significant discount.

Supply chain issues are easing

Neri verified that the supply chain and the labor market were both improving in an interview with CNBC this morning at the World Economic Forum in Davos.

We went through a period of recovery both by additional capacity but also by declining consumer which allowed suppliers to shift to enterprise. We have the highest employee engagement ever and lowest attrition in a long time.

This multinational recently acquired Pachyderm, a machine learning business, to broaden its offering of artificial intelligence services. Additionally this week, it paid $30 million to Oracle to resolve a protracted legal dispute. In comparison to its 2019 (pre-pandemic) high, HPE stock is still down 10%.

HPE stock is trading at a discount

HPE reported its sales in the fourth financial quarter significantly exceeded Street projections in late November. More importantly, CEO Neri anticipates that this year will also be successful.

We’re still significantly undervalued for the profit and growth we’re driving. We’re extremely well-positioned to the trends we see in the market. Our strategy is working to become an edge-to-cloud company.

He continued that Hewlett Packard Enterprise Company will significantly benefited from a hybrid future.

His optimistic outlook is in line with Wall Street, which now views the HPE stock as “overweight” with a potential upside of little over $17, a 10% premium over its current price.