Bank of America Securities analyst Wamsi Mohan has reiterated their bullish stance on DELL stock, giving a Buy rating on September 29.
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Wamsi Mohan has given his Buy rating due to a combination of factors, primarily focusing on Dell Technologies’ strong position in the AI server market and its potential for growth in the storage segment. The analyst highlights the trajectory of AI server revenue and the total addressable market, noting that Dell’s current momentum could lead to higher than anticipated revenue growth. Additionally, the durability and margins associated with AI servers are expected to contribute significantly to the company’s earnings.
Furthermore, Mohan points out the potential for Dell to gain market share in the storage segment, which could enhance the company’s overall profitability. The early stages of AI adoption, combined with the expected refresh cycle in PCs and the introduction of AI PCs, provide additional tailwinds for Dell. Despite potential challenges in free cash flow growth due to the working capital intensity of AI servers, the analyst believes that Dell’s return on invested capital should improve, supporting a potential expansion in valuation multiples.
In another report released on September 29, J.P. Morgan also reiterated a Buy rating on the stock with a $145.00 price target.