Bank of America Securities analyst Wamsi Mohan has reiterated their bullish stance on DELL stock, giving a Buy rating yesterday.
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Wamsi Mohan has given his Buy rating due to a combination of factors, including Dell Technologies’ promising long-term growth prospects and strategic focus on artificial intelligence (AI). The company has projected a robust revenue growth rate of 7% to 9%, primarily driven by the Infrastructure Solutions Group (ISG) with an expected growth of 11% to 14%. Additionally, Dell’s guidance for long-term earnings per share (EPS) growth exceeds 15%, reflecting strong potential in AI-related margins and the early stages of AI adoption.
Moreover, Dell’s commitment to returning over 80% of adjusted free cash flow to shareholders and its plan to increase dividends by at least 10% annually further support the Buy rating. The company’s strategic initiatives, including the anticipated tailwinds from PC refresh cycles and AI-enhanced PCs, align with Mohan’s positive outlook. The price objective of $170, based on a 15x multiple of the estimated 2026 EPS, underscores the confidence in Dell’s financial trajectory and market positioning.
Mohan covers the Technology sector, focusing on stocks such as Apple, Dell Technologies, and HP. According to TipRanks, Mohan has an average return of 19.2% and a 64.89% success rate on recommended stocks.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $175.00 price target.