Analyst Krish Sankar of TD Cowen maintained a Hold rating on Dell Technologies, boosting the price target to $130.00.
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Krish Sankar has given his Hold rating due to a combination of factors impacting Dell Technologies. The company’s AI server revenues were strong, with a significant backlog, which led to an optimistic revenue outlook for FY26. However, the margins from AI servers are lower, and there were one-time supply chain costs that affected gross margins, which decreased quarter-over-quarter.
Despite a stable performance in traditional servers and potential for future upgrades, Dell is facing challenges in its PC segment, where it has lost market share. New products may eventually help regain traction, but this is expected to take some time. Additionally, the storage segment showed mixed results, with revenues flat year-over-year, partly due to delayed purchasing decisions by large enterprise customers. These mixed signals contribute to the Hold rating as the company navigates both opportunities and challenges.
According to TipRanks, Sankar is a 5-star analyst with an average return of 18.7% and a 59.64% success rate. Sankar covers the Technology sector, focusing on stocks such as Apple, Applied Materials, and MKS.
In another report released today, Barclays also maintained a Hold rating on the stock with a $131.00 price target.