Morgan Stanley analyst Erik Woodring has maintained their bullish stance on DELL stock, giving a Buy rating yesterday.
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Erik Woodring has given his Buy rating due to a combination of factors that suggest a promising future for Dell Technologies. The company’s long-term revenue and earnings per share (EPS) growth targets have surpassed expectations, driven largely by the rapid expansion of its AI server business. This growth trajectory indicates a strong potential for Dell to outperform its current market valuation.
Despite the anticipated pressure on margins due to the AI server mix, Woodring believes that Dell’s strategic initiatives in its core businesses could help stabilize operating margins. The potential for Dell to achieve its ambitious EPS targets by FY30 further supports the Buy rating, with the stock expected to trade between the base and bull case valuations if the AI momentum continues. This optimistic outlook is underpinned by robust supply chain checks and the possibility of Dell’s AI server revenue growing even faster than management’s projections.
In another report released yesterday, Citi also assigned a Buy rating to the stock with a $175.00 price target.
DELL’s price has also changed dramatically for the past six months – from $75.000 to $150.870, which is a 101.16% increase.