BofA analysts raised the firm's price target for Dell Technologies (NYSE:DELL) to $60 from $55, maintaining a Buy rating on the stock Wednesday, stating the company is becoming more shareholder-friendly.
The analysts added in a note to investors that the company's governance structure is improving. BofA also raised its rating for Dell's Environment, Social, and Governance structures.
"The improvement in DELL's Governance rating can be attributed to the company's decision to reconstitute the membership of the Nominating and Governance Committee to be entirely independent with both Michael Dell and Egon Durban no longer part of the committee and Ellen Kullman appointed as a member and chair of the committee," wrote the analysts.
"Additionally, DELL appointed Ellen Kullman as Lead Independent Director. Reiterate Buy as company should benefit from a recovering PC market, low expectations on Infrastructure segment and as the company becomes more shareholder-friendly with increased capital return on the way."
The analysts also went on to state that companies that lower their total share count "tend to outperform." Dell has repurchased a total of 40 million shares for $1.6B over the past 12 months. In addition, they pointed to Dell's goal to return 40% to 60% of adjusted FCF to shareholders, and its increased dividends, as other positive factors for the stock.