Analyst Jim Hin Kwong Au of DBS maintained a Buy rating on Dell Technologies (DELL – Research Report), with a price target of $146.40.
Jim Hin Kwong Au has given his Buy rating due to a combination of factors that highlight Dell Technologies’ strong growth potential. The company’s non-GAAP EPS has shown a significant year-over-year increase, largely driven by its high-margin AI servers. Management’s guidance for revenue and earnings growth is optimistic, with expectations of an 8% increase in revenue and a 14% rise in earnings, which aligns with the company’s strategic focus.
Additionally, Dell’s position as the third-largest PC OEM worldwide, with a substantial market share in key categories such as storage software and converged systems, underscores its competitive edge. The introduction of AI-enabled PCs, in partnership with Microsoft, is anticipated to drive new growth, while the AI-optimized servers are expected to continue supporting the company’s expansion. With the stock trading below the peer average P/E ratio, Jim Hin Kwong Au sees an opportunity for investors to benefit from Dell’s projected solid growth in the coming years.
According to TipRanks, Hin Kwong Au is a 5-star analyst with an average return of 19.8% and a 71.00% success rate. Hin Kwong Au covers the Technology sector, focusing on stocks such as Apple, AAC Technologies Holdings, and Lenovo Group.
In another report released on February 28, Bank of America Securities also reiterated a Buy rating on the stock with a $150.00 price target.