Dell stock: Here are the top 5 focus items into Analyst Day next week

Published 02/10/2025, 17:52
© Reuters.

Investing.com -- Dell will host its analyst day in New York on October 7, and Evercore ISI said investors’ attention will centre on five major themes ranging from growth targets to artificial intelligence.

The firm expects Dell to “endorse a high single-digit revenue growth model and EPS growth of low teens in a consistent and durable manner,” supported by client solutions growth in the low single digits, infrastructure solutions in the mid single digits, and AI servers expanding more than 20%.

The first focal point is Dell’s long-term model. According to Evercore ISI, margin guidance will likely include “ISG margin guide of 10-13% (vs. 11-14%) and CSG margin target of 5-7%.”

Second, analysts said they anticipate management will explain “its strategy to improve margins despite AI server mix headwinds,” arguing that Dell’s ability to grow revenues while cutting operating expenses “is underappreciated.”

Third, investors will be looking for details on Dell’s AI business expansion. Evercore ISI expects updates on “how it plans to grow its customer base beyond neoclouds and into enterprises/sovereigns, which carry higher margins.”

The fourth item is storage. The firm noted Dell “expects storage mix (less third-party and more IP) to improve in H2:FY26, helping to improve ISG margins,” adding this will be a key discussion point.

Finally, Dell’s PC strategy is set for attention, according to Evercore. With Jeff Clarke now leading the segment, Evercore ISI said management is expected to lay out how it can “recoup lost market share and improve segment profitability.”

“Net/Net: We think DELL will provide a multi-year financial framework that’ll demonstrate its ability to grow revenues at a HSD rate while meaningfully cutting operating expenses,” Evercore ISI said, reiterating an Outperform rating and $160 target.

 

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