Evercore ISI analyst Amit Daryanani has maintained their bullish stance on DELL stock, giving a Buy rating today.
Amit Daryanani’s rating is based on a thorough analysis of Dell Technologies’ recent financial performance and future outlook. The company’s latest quarterly report surpassed expectations, showcasing revenues of $22.3 billion and earnings per share of $2.20, which exceeded the consensus estimates. This outperformance was attributed to Dell’s robust gross margins, coming in at 24.5%, and a strong showing in their Infrastructure Solutions Group (ISG), particularly from revenues related to AI server sales. The growth in AI server sales, which are expected to continue rising in the coming quarter, combined with a solid financial forecast for the fiscal year 2025, with an anticipated $93 billion in revenue and $7.50 EPS, underpins Daryanani’s optimistic assessment.
Furthermore, Daryanani underscores the significance of Dell’s AI-optimized server orders, which saw a nearly 40% sequential increase, and a backlog that indicates a promising pipeline for future sales. The company’s strategic positioning in the traditional server market, which is witnessing a recovery, and expectations of a rebound in the PC market in the second half of the year, further strengthen the case for a Buy rating. While acknowledging some challenges, such as the anticipated contraction in overall gross margins due to AI server mix headwinds, Daryanani adjusts the target price to $125, reflecting confidence in Dell’s higher forward twelve months EPS and the company’s ability to navigate through market uncertainties with its diversified portfolio and strong growth in key areas.
In another report released today, Bernstein also maintained a Buy rating on the stock with a $120.00 price target.
DELL’s price has also changed dramatically for the past six months – from $56.500 to $94.660, which is a 67.54% increase.
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Dell Technologies (DELL) Company Description:
Dell Technologies Inc. is a multinational information technology company which is engaged in providing hardware and software services solutions. The comapny, through its Client Solutions Group (CSG), sells desktops, notebooks, workstations, third-party software and peripherals. Meanwhile, it offers storage, networking and servers as well as attached software and peripherals through its Infrastructure Solutions Group (ISG). Under the VMware division, the company provides cloud management, compute, storage and availability, networking and security, and other end-user computing solutions.
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