Krish Sankar, an analyst from TD Cowen, maintained the Hold rating on Dell Technologies. The associated price target remains the same with $150.00.
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Krish Sankar has given his Hold rating due to a combination of factors, reflecting both positive developments and ongoing challenges for Dell Technologies. The company’s AI server business is experiencing significant growth, with expectations of a 45% year-over-year increase, which is a positive indicator for future revenue. Additionally, Dell’s disciplined cost management and its strong position to handle component price increases are seen as strengths.
However, there are concerns that temper the overall outlook. Rising commodity costs and scarcity issues pose potential risks, and there has been no significant improvement in the gross margins of AI servers. Furthermore, the storage segment has not shown notable progress, remaining flat, which is a critical factor in maintaining the Hold rating. The combination of these mixed elements suggests a cautious approach, leading to the decision to hold rather than buy or sell the stock.