Evercore ISI analyst Amit Daryanani has maintained their bullish stance on DELL stock, giving a Buy rating on October 22.
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Amit Daryanani has given his Buy rating due to a combination of factors that highlight Dell Technologies’ strategic growth and financial prospects. One of the key reasons is Dell’s recent expansion into Tier-2 cloud providers, exemplified by a significant contract with IREN, which involves a $5.8 billion purchase agreement for GPUs and ancillary equipment. This deal not only enhances Dell’s presence in the AI server market but also contributes to a substantial portion of its AI server revenue for the year.
Amit Daryanani also notes Dell’s long-term growth framework, which projects a 7-9% sales growth and over 15% EPS growth in the coming years. The company’s focus on expanding its AI compute and storage capabilities, along with its commitment to returning 80%+ of free cash flow to shareholders, further supports the positive outlook. These strategic initiatives and financial metrics underpin the Buy rating, with a target price of $180, reflecting confidence in Dell’s ability to capitalize on emerging opportunities and deliver shareholder value.
In another report released on October 22, Piper Sandler also initiated coverage with a Buy rating on the stock with a $172.00 price target.
Based on the recent corporate insider activity of 185 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DELL in relation to earlier this year.