Analyst Erik Woodring from Morgan Stanley maintained a Buy rating on Dell Technologies (DELL – Research Report) and keeping the price target at $135.00.
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Erik Woodring has given his Buy rating due to a combination of factors that highlight Dell Technologies’ potential for strong performance in the AI server market. The company is expected to see significant growth in its AI server sales, with projections suggesting a substantial increase beyond current estimates. This growth is anticipated to contribute positively to Dell’s earnings per share, despite potential pressures on operating margins.
Woodring’s confidence in Dell’s ability to manage these margin pressures is supported by the company’s strategies for cost efficiency and storage outperformance. These strategies are expected to help Dell maintain operating margin expansion, which is a critical factor for stock outperformance. As a result, the Buy rating reflects the belief that Dell’s strategic initiatives will enable it to capitalize on the AI server market’s growth while effectively managing associated challenges.
In another report released on June 20, Evercore ISI also maintained a Buy rating on the stock with a $150.00 price target.
Based on the recent corporate insider activity of 114 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DELL in relation to earlier this year.