Analyst Wamsi Mohan of Bank of America Securities reiterated a Buy rating on Dell Technologies (DELL – Research Report), boosting the price target to $155.00.
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Wamsi Mohan’s rating is based on Dell Technologies’ strong performance and future potential in the AI server market. The company reported first-quarter revenues that exceeded expectations, although earnings per share were at the lower end due to minor tariff impacts and slightly weaker growth in certain segments. However, the guidance for the second quarter significantly surpassed market expectations, driven by an additional $5 billion in revenues from AI servers.
Wamsi Mohan has confidence in Dell’s ability to capitalize on the early stages of AI adoption, with the potential for substantial revenue and earnings growth from AI servers over the next two years. The company’s commercial segment showed robust growth, and despite a modest impact from tariffs, Dell managed to maintain stable pricing. Additionally, Dell’s AI server backlog and strong order guidance for the second quarter further support the positive outlook, leading to an increased price objective of $155.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $145.00 price target.
DELL’s price has also changed moderately for the past six months – from $127.590 to $113.630, which is a -10.94% drop .