Mizuho raises Dell stock price target to $145 from $140

Published 16/05/2025, 22:00
Mizuho raises Dell stock price target to $145 from $140

On Friday, Mizuho (NYSE:MFG) Securities expressed confidence in Dell Technologies Inc. (NYSE:DELL), increasing the price target on the company’s shares to $145.00, up from the previous target of $140.00. The firm maintained its Outperform rating on the technology giant’s stock. According to InvestingPro data, Dell’s shares have shown remarkable momentum with a 15.6% return in the past week, while analysts maintain a strong buy consensus with price targets ranging from $89 to $170.

The adjustment in Dell’s price target comes with a positive outlook on the company’s potential to expand its market share in the AI Server sector. Mizuho’s analysts believe that Dell has a robust pipeline, which they estimate to be worth approximately $30 billion. This anticipated growth is based on the company’s strong positioning and expected future demand. With current annual revenue of $95.57 billion and a market capitalization of $79.94 billion, Dell stands as a prominent player in the Technology Hardware sector.

The firm’s analysts have not made any changes to their earnings estimates for Dell but have revised the price target based on a slightly higher price-to-earnings (P/E) ratio forecast for fiscal year 2027. The new target reflects a P/E ratio of 13.6 times Mizuho’s fiscal year 2027 earnings (F27E) projection, up from the previous multiple of 13.2 times. InvestingPro analysis shows Dell is currently trading at a P/E ratio of 17.54, suggesting room for potential value creation. Get access to 12 more exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.

In addition to the potential in the AI Server market, Mizuho also anticipates that Dell could benefit from a corporate and AI PC refresh cycle in the second half of 2025. This refresh cycle is expected to provide an additional boost to Dell’s business prospects.

Dell Technologies, known for its personal computers, servers, and other technology solutions, has been actively expanding its offerings to include more advanced technologies like artificial intelligence. The company’s efforts to innovate and capture new market opportunities have been closely monitored by industry analysts.

The stock price adjustment by Mizuho reflects optimism about Dell’s strategic direction and its ability to capitalize on emerging technology trends. The Outperform rating suggests that analysts at Mizuho believe Dell’s stock will perform better than the average return of the stocks they cover over the next 12 months. With a dividend yield of 1.89% and impressive dividend growth of 41.89% over the last twelve months, Dell continues to demonstrate strong shareholder value creation. Discover more detailed insights and Fair Value estimates in Dell’s comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Dell Technologies Inc. has announced a significant $4 billion debt offering, involving the sale of senior notes with varying maturities and interest rates. This move is intended to provide the company with financial flexibility for future corporate initiatives. Dell Technologies plans to use the proceeds for general corporate purposes, including potential debt repayment. In anticipation of its upcoming earnings report, BofA Securities has maintained a Buy rating for Dell with a $150 price target, citing strong PC revenue as a positive factor. Raymond (NSE:RYMD) James also raised its price target for Dell to $144, maintaining an Outperform rating, due to shifts in AI technology and PC market dynamics. Additionally, Morgan Stanley (NYSE:MS) continues to hold an Overweight rating on Dell, with a $128 price target, highlighting an increase in orders for Dell’s AI server systems as a promising sign for future revenues. In product news, Dell has unveiled updates to its server, storage, and data protection portfolios to support data center modernization, addressing demands in AI, cyber resilience, and infrastructure. These developments reflect Dell’s ongoing efforts to adapt to market changes and enhance its offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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