BofA warns Fed risks policy mistake with early rate cuts
Investing.com - Morgan Stanley (NYSE:MS) raised its price target on Dell (NYSE:DELL) to $144.00 from $135.00 on Thursday, while maintaining an Overweight rating on the stock. The tech giant, with a market capitalization of $86.87 billion and trailing twelve-month revenue of $96.7 billion, currently trades near InvestingPro’s calculated Fair Value.
The investment bank cited Dell’s position as "the clear leading OEM for AI compute" and noted the company is gaining market share with key customers xAI and CRVV, while also regaining share in enterprise storage markets.
Morgan Stanley highlighted Dell’s ongoing company-wide cost efficiency program, which the bank believes will drive over 10% EPS growth over the next three years, exceeding management’s stated goal of 8% or higher growth.
At $128, approximately 10% lower than a week ago, Dell is trading at 11.3 times Morgan Stanley’s FY27/CY26 EPS estimate, which is 5% above consensus, suggesting potential for both multiple expansion and positive EPS revisions.
Morgan Stanley identified Dell’s upcoming October 7 Analyst Day as the next major catalyst for the stock following its second-quarter earnings report.
In other recent news, Dell Technologies has seen several updates regarding its financial outlook and business developments. Melius Research raised its price target for Dell to $170, citing an optimistic view of the company’s business segments, particularly in AI servers, with expectations extending through fiscal year 2028. Similarly, Evercore ISI increased its price target to $160, maintaining an Outperform rating, as their supply chain checks suggest potential upside for Dell’s AI server momentum through fiscal year 2026. Mizuho (NYSE:MFG) also raised its price target to $160, reflecting stronger expectations for Dell’s AI server business, with an increased earnings multiple based on their fiscal 2027 estimates.
Additionally, Dell announced enhancements to its AI Data Platform, aiming to improve support for the full AI lifecycle. The updated platform features a new unstructured data engine developed with Elastic (NYSE:ESTC), offering advanced search capabilities and GPU acceleration. Meanwhile, Dell’s stock experienced a decline following Super Micro Computer (NASDAQ:SMCI)’s disappointing quarterly results, which missed Wall Street estimates and hinted at potential market share losses to larger competitors like Dell in the high-performance server market. These developments indicate ongoing interest and activity in Dell’s AI initiatives and financial projections.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.