Citi has reiterated its bullish stance on Dell Technologies (DELL) ahead of the company’s upcoming first-quarter earnings report on May 29. Notably, Citi’s five-star-rated analyst Asiya Merchant maintained her Buy rating on Dell stock with a price target of $128. Citi joins several other analysts in showing strong confidence in Dell as the Q1 results approach.
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Wall Street analysts project Dell to report an EPS (earnings per share) of $1.71 for Q1 FY26, up from $1.27 in the same quarter last year. Meanwhile, revenue for the quarter is expected to reach $23.18 billion, reflecting a 4% increase year-over-year.
Citi Backs Dell Stock Before Earnings
Citi shared an “upside 90-day short-term view” on DELL stock. According to Citi, demand for Dell’s AI server (GB200) is picking up, with one of Dell’s top suppliers seeing stronger activity starting in May. Merchant explained that this data supports Dell’s expectation of a 50% increase in AI server revenue in 2025, enhancing investor confidence in the company’s prospects.
Earlier this month, Citi raised its price target from $105 to $128. The firm believes Dell’s low inventory levels, efficient manufacturing process, and diverse supply chain make the company better positioned to adjust quickly to changing market conditions compared to its competitors.
Wall Street Remains Bullish on DELL Stock
Recently, Bank of America Securities analyst Wamsi Mohan also maintained a Buy rating on DELL with a $150 price target. The top-rated analyst expects Q1 results to come in toward the higher end of the company’s revenue and earnings guidance.
Mohan’s upbeat outlook is based on stronger-than-expected PC sales, fueled by improving demand and Dell’s increasing traction in AI-enabled hardware. The firm raised its Q1 earnings estimate to $1.77 per share (from $1.66), citing higher revenue in Dell’s client solutions group as customers purchased PCs earlier than anticipated.
Is DELL Stock a Good Buy Now?
According to TipRanks, DELL stock has received a Strong Buy consensus rating, with nine Buys assigned in the last three months. The average Dell share price target is $133.22, suggesting a potential upside of 17% from the current level.
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