Bank of America Securities analyst Wamsi Mohan reaffirmed a Buy rating on Dell Technologies (DELL) with a $150 price target ahead of the company’s May 29 earnings release. The five-star-rated analyst anticipates first-quarter numbers to land near the higher end of Dell’s revenue and earnings guidance range. However, it has also flagged potential risks to the fiscal 2026 outlook due to ongoing tariff concerns.
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Dell Gets BofA Backing, Though Tariffs May Dent Outlook
BofA’s bullish stance comes as it anticipates stronger-than-expected PC revenue, driven by improving demand trends and Dell’s growing momentum in AI-powered hardware. Notably, it has raised its earnings estimate for the quarter to $1.77 per share (up from $1.66), driven by higher revenue in Dell’s client solutions group, as more customers bought PCs earlier than expected.
Looking ahead to fiscal 2026, the investment firm sees potential risks to Dell’s profit margins and earnings due to new tariffs and a weaker demand environment. The firm pointed out that since about half of Dell’s revenue comes from its PC business, most of which is sourced from China, tariffs could significantly hurt profit margins.
However, Dell may be able to reduce the impact by making early purchases and cutting costs. For now, BofA lowered its revenue estimates for Dell’s enterprise (ISG) segment in 2026, as tariffs could reduce IT spending by businesses. While it has also trimmed its full-year revenue forecast for the PC (CSG) business, it expects stronger sales in the first half of the year as customers may rush to buy before prices rise.
Overall, the firm has revised its FY26 revenue and EPS estimates for Dell to $103.2 billion and $9.16 per share, down from its previous forecast of $105.3 billion in revenue and $9.41 in earnings per share.
Is DELL Stock a Good Buy Now?
According to TipRanks, DELL stock has received a Strong Buy consensus rating, with 12 Buys and three Holds assigned in the last three months. The average Dell share price target is $129.56, suggesting a potential upside of 16.7% from the current level.
