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Investing.com - BofA Securities raised its price target on Dell (NYSE:DELL) to $167.00 from $165.00 on Friday, while maintaining a Buy rating on the stock. The target represents potential upside from Dell’s current stock price of $134.05, with the company now commanding a market capitalization of approximately $91 billion.
The firm cited expectations for long-term earnings per share growth of 15% over the next five years, supported by strong growth in artificial intelligence servers.
Dell delivered $2.5 billion in operating cash flow while growing Infrastructure Solutions Group revenues by 44%, driven by strong AI server performance, according to BofA Securities.
The investment bank views Dell’s current valuation as attractive, noting the stock trades at 12 times calendar 2026 estimated earnings per share, 9 times price-to-free cash flow, and 11 times enterprise value to unlevered free cash flow.
BofA Securities reiterated its Buy rating, stating the market is still in the early stages of AI adoption, with Dell positioned to benefit from margin improvements from product mix, an upcoming PC refresh cycle, and longer-term AI PC adoption.
In other recent news, Dell Technologies reported impressive financial results for the second quarter of fiscal year 2026, surpassing analyst expectations. The company achieved earnings per share of $2.32, which exceeded the forecasted $2.29, and posted a record revenue of $29.8 billion, surpassing the expected $29.2 billion. UBS highlighted the strong performance in Dell’s artificial intelligence server revenue, which reached $8.2 billion, significantly beating their initial projection of $7 billion. In light of these developments, UBS raised its price target for Dell from $145 to $155, maintaining a Buy rating on the stock. These recent developments underscore Dell’s robust financial performance and the impact of its AI initiatives.
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