Dell Technologies (NYSE:) shares rose 2.7% ahead of Wednesday's market open after Morgan Stanley analysts reiterated the company as a top pick and raised their 12-month price target. Rose.
The price target was raised from $128 to $152, suggesting an increase of approximately 13% from the previous closing price.
“Even after more than 100% in T12M, DELL trades at just 13x FY26 new EPS of $10.12 (18% above expectations) and is expected to: 1) gain momentum in AI Server; 2) adjusting storage demand and 3) improving the PC market,” the analysts said in a note.
Morgan Stanley analysts note a shift in DELL's momentum over the past four weeks due to competitive Tier 2 CSP AI server acquisitions, additional orders for enterprise AI servers, and increased storage demand. Masu.
As a result, the technology company now has the strongest forward spending intent in six years, analysts highlighted.
Even taking into account the high targets for building AI servers from the supply chain, analysts expect earnings per share for FY2025 to be just over $8, compared to the consensus of $7.55, and for FY2026 to be $10.12, compared to the previous forecast of $9.11. It is predicted that this will increase from
For the April quarter, we expect Dell to increase EPS and highlight continued growth in AI server backlog quarter-over-quarter.
“We believe the big Tier 2 CSP wins mentioned above could represent $2 billion in orders this quarter, meaning AI backlog at the end of the April quarter was just under $4 billion. , taking into account the victory of small and medium-sized enterprises, could be even higher, unless otherwise “there will be no material change in sales for the April quarter,'' the analyst noted.
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