Morgan Stanley Significantly Changes Its Price Target for Dell Stock

Morgan Stanley kept its Buy rating on Dell Technologies (DELL) and raised its price target from $89 to $126 ahead of the tech company’s Q1 Fiscal 2026 earnings on May 29. Analyst Erik Woodring and his team expect Dell to slightly beat expectations for the April quarter but think full-year guidance will likely stay the same. This is because Dell is balancing strong demand for AI infrastructure with mixed results in traditional hardware and uncertainty around tariffs.

Nevertheless, the analysts said that Dell’s AI server business looks strong, with about $2.3 billion in revenue expected for the April quarter and nearly $20 billion in visibility for Fiscal 2026. But growth into the July quarter may depend on how well Dell can manage its supply. Indeed, for traditional hardware, the outlook is mixed but still leaning positive. Furthermore, Dell is gaining market share in its Infrastructure Solutions Group, while its Client Solutions Group is expected to perform better in the first half of the year.

Because of this, Morgan Stanley sees a small upside for Q1 results. They are more optimistic than most for Q2, with estimates of $2.10 in EPS, but they think Dell may give more cautious guidance of around $2.00 and don’t expect Dell to raise its full-year outlook just yet. With the stock already performing well recently, they also think it could take a pause after earnings, although they remain positive about the second half of the year.

Is DELL Stock a Good Buy Now?

Turning to Wall Street, analysts have a Strong Buy consensus rating on DELL stock based on 12 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average DELL price target of $132.23 per share implies 17.7% upside potential.

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