Analyst Erik Woodring of Morgan Stanley maintained a Sell rating on Dell Technologies, boosting the price target to $113.00.
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Erik Woodring has given his Sell rating due to a combination of factors affecting Dell Technologies. While the company has shown strong performance in AI servers, which significantly contribute to revenue and earnings per share (EPS) growth, there are concerns about the broader enterprise business. The core enterprise growth remains mixed, with non-AI server hardware showing only modest growth.
Woodring’s rating also considers the potential impact of the memory supercycle, which is expected to lead to memory price inflation and supply shortages. This unprecedented cycle poses a risk to Dell’s margins and demand across all product categories. Although Dell’s management has acknowledged these challenges and guided to a promising EPS growth, Woodring remains cautious about the company’s ability to fully mitigate the impact of rising input costs, leading to his Sell recommendation.
Woodring covers the Technology sector, focusing on stocks such as Apple, Dell Technologies, and HP. According to TipRanks, Woodring has an average return of 8.8% and a 62.22% success rate on recommended stocks.