Citi analyst Asiya Merchant maintained a Buy rating on Dell Technologies yesterday and set a price target of $160.00.
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Asiya Merchant has given her Buy rating due to a combination of factors that highlight Dell Technologies’ promising growth prospects. The company is expected to revise its long-term revenue growth targets upwards, driven by a significant backlog and growth expectations in its AI hardware portfolio, which constitutes a substantial portion of its revenues. Additionally, Dell is anticipated to improve its earnings per share (EPS) targets, leveraging multiple strategies such as share count management, debt reduction, and operating expense optimization to achieve double-digit EPS performance.
Furthermore, Dell’s AI server segment is experiencing robust demand, with shipments expected to more than double year-over-year, contributing to the growth of its Infrastructure Solutions Group. The company’s storage portfolio also presents growth opportunities, particularly through the integration of storage solutions with AI infrastructure deals, which is expected to enhance monetization and margins. These factors, combined with the broadening momentum in neocloud, enterprise, and sovereign AI sectors, underpin Merchant’s positive outlook on Dell’s stock.
In another report released on September 15, Bernstein also initiated coverage with a Buy rating on the stock with a $175.00 price target.
DELL’s price has also changed moderately for the past six months – from $98.860 to $130.960, which is a 32.47% increase.