Dell Technologies (NYSE:DELL) got a boost on Thursday after five-star-rated analyst Wamsi Mohan assigned a Buy rating and a price target of $180 on the stock. The analyst’s price target implies an upside potential of 33.5% from current levels.
Wamsi Mohan’s Rationale for DELL Stock
The analyst stated that DELL is at a premium right now due to its “value add in AI servers” despite the tech company not being a price leader when it comes to AI servers. Over the past year, DELL has increased by more than 100%. Mohan added that he expects the AI server margin will improve over time.
Furthermore, the analyst stated that the company could get a boost through higher sales of personal computers (PCs) next year due to an aging installed base, the end of support for the Windows 10 operating system, and the availability of AI PCs.
Moreover, Mohan projected that the company’s margins for its enterprise data storage products will improve after a weak first quarter, with long-term growth in storage and networking as AI server use increases.
Is Dell Stock a Good Buy Now?
Analysts remain bullish about DELL stock, with a Strong Buy consensus rating based on 11 Buys, one Hold, and one Sell. The average DELL price target of $157.15 implies an upside potential of 16.4% from current levels.
