Stock Analysis & Ideas

Cyclical Bottom in Sight; Goldman Recommends Betting on Dell (NYSE:DELL)

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Goldman Sachs initiates coverage on Dell stock with a Buy. The analyst anticipates a cyclical bottom in the PC/Server market.

Goldman Sachs analyst initiated coverage on the shares of Dell Technologies (NYSE:DELL) with a Buy recommendation. The analyst expects an impending cyclical bottom in the PC/Server market. Thus, predicting a turn for the better in the short term, Goldman has a price target of $43 on DELL stock, implying an upside potential of 15.53%. 

The slowdown in the PC market and a significant decline in demand in Q4 weighed on Dell’s Client Solutions Group (CSG) revenues. Adding to its problems, heightened competition and elevated industry channel inventories remained a drag. 

Nonetheless, Goldman expects Dell to benefit from “the shift toward enterprise investments in hybrid multi-cloud, which should mitigate headwinds from workloads shifting to the public cloud.” Moreover, the firm expects Dell to capitalize on the shift toward other personal computing devices like phones and tablets. 

In addition, new product innovation, like Dell’s APEX and consumption-based business model, will likely improve top-line visibility and lead to lower customer churn. 

Meanwhile, ongoing strength in Dell’s Infrastructure Solutions Group, including Servers and networking, and Storage revenues, will likely drive its overall revenues and earnings

While Goldman is bullish, let’s check what other analysts recommend for DELL stock. 

Is DELL Stock a Good Buy Now?

DELL stock has received nine Buy and two Hold recommendations, indicating a Strong Buy consensus rating on TipRanks. Analysts’ average price target of $46.77 implies 25.66% upside potential. 


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