BofA raises Dell stock price target to $155, maintains Buy rating

Published 30/05/2025, 09:06
BofA raises Dell stock price target to $155, maintains Buy rating

The analyst’s positive outlook is based on the early stages of AI adoption, beneficial product mix margins, and the anticipated demand from an upcoming PC refresh cycle. Moreover, the long-term adoption of AI in PCs is expected to provide a tailwind for the company.Dell’s recent financial report and the subsequent analysis by BofA Securities suggest a strong trajectory for the company, particularly in the AI server market. The increased price target reflects confidence in Dell’s ability to capitalize on these emerging technology trends and to continue delivering growth in both revenue and earnings. With a P/E ratio of 17.37 and strong growth prospects, Dell presents an interesting investment case. For deeper insights into Dell’s valuation and growth potential, including 12 additional exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro. With a P/E ratio of 17.37 and strong growth prospects, Dell presents an interesting investment case. For deeper insights into Dell’s valuation and growth potential, including 12 additional exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

The analyst’s positive outlook is based on the early stages of AI adoption, beneficial product mix margins, and the anticipated demand from an upcoming PC refresh cycle. Moreover, the long-term adoption of AI in PCs is expected to provide a tailwind for the company.Dell’s recent financial report and the subsequent analysis by BofA Securities suggest a strong trajectory for the company, particularly in the AI server market. The increased price target reflects confidence in Dell’s ability to capitalize on these emerging technology trends and to continue delivering growth in both revenue and earnings. With a P/E ratio of 17.37 and strong growth prospects, Dell presents an interesting investment case. For deeper insights into Dell’s valuation and growth potential, including 12 additional exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

The analyst’s positive outlook is based on the early stages of AI adoption, beneficial product mix margins, and the anticipated demand from an upcoming PC refresh cycle. Moreover, the long-term adoption of AI in PCs is expected to provide a tailwind for the company.

Dell’s recent financial report and the subsequent analysis by BofA Securities suggest a strong trajectory for the company, particularly in the AI server market. The increased price target reflects confidence in Dell’s ability to capitalize on these emerging technology trends and to continue delivering growth in both revenue and earnings.

In other recent news, Dell Technologies Inc. (NYSE:DELL) reported its first-quarter earnings for 2025, revealing a robust performance driven by its AI server business. The company reported earnings per share (EPS) of $1.55, which fell short of the forecasted $1.69, but exceeded revenue expectations with $23.38 billion against a $23.14 billion forecast. This revenue growth was attributed to a significant increase in AI server orders and shipments, with AI server orders surpassing $12 billion. Following the earnings report, Dell raised its full-year EPS guidance to $9.40, reflecting a 15% increase.

Additionally, Morgan Stanley (NYSE:MS) adjusted its outlook on Dell, raising the price target from $126.00 to $135.00 while maintaining an Overweight rating. Analyst Erik Woodring noted that the strength in AI server sales is expected to offset some concerns in the enterprise sector. Meanwhile, Barclays (LON:BARC) also updated its outlook on Dell, increasing the price target to $123.00 from $116.00, but maintained an Equalweight rating. Analyst Tim Long expressed concerns about the impact of Blackwell rack scale systems on Dell’s gross margin.

Despite these concerns, Dell’s recent earnings report demonstrated solid performance, with a 5% year-over-year increase in revenue. The company’s AI server segment has positioned it as a leader in the market, backed by strategic partnerships with companies like NVIDIA (NASDAQ:NVDA) and Google (NASDAQ:GOOGL). These developments highlight Dell’s focus on AI technology and its potential to drive future growth.

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