Dell Technologies, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Asiya Merchant from Citi maintained a Buy rating on the stock and has a $160.00 price target.
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Asiya Merchant has given her Buy rating due to a combination of factors that highlight Dell Technologies’ strategic positioning and financial outlook. The company’s management anticipates significant revenue from AI server sales, projecting $20 billion for the fiscal year, with a notable contribution in the third quarter. This focus on AI servers, despite causing some earnings dilution, is expected to balance out as traditional server and storage demand increases in the latter half of the year.
Additionally, Dell’s strategic emphasis on integrating storage and networking solutions with installation services is poised to enhance margins, particularly as they leverage their proprietary storage solutions. The company’s competitive edge is further bolstered by their first-to-market advantage with the latest AI server generation, which supports sustained demand and justifies premium pricing. Moreover, Dell’s strong cash flow generation underpins share repurchases, contributing to an anticipated share price return of 19.4%, reinforcing the Buy recommendation.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a $140.00 price target.
Based on the recent corporate insider activity of 135 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.