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’ strong revenue and free cash flow performance, which position it as a leading name in the AI server market. The company’s long-term earnings per share (EPS) growth is projected at 15% over the next five years, driven by robust growth in AI servers. The recent quarterly and full-year guidance has reinforced confidence in Dell’s ability to surpass consensus revenue estimates for AI servers.
Additionally, Dell’s shares are trading at attractive valuation multiples, such as 12x the estimated EPS for 2026 and 9x price to free cash flow, which are compelling given the company’s revenue and EPS growth profile. The Buy rating is further supported by the early stages of AI adoption, potential margin improvements from product mix, and the anticipated tailwinds from a PC refresh cycle and longer-term AI PC adoption. The raised guidance for AI server revenues and expectations for improved profitability as revenue scales also contribute to the positive outlook.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a $140.00 price target.
DELL’s price has also changed moderately for the past six months – from $102.760 to $134.050, which is a 30.45% increase.