Morgan Stanley analyst Erik Woodring maintained a Buy rating on Dell Technologies (DELL – Research Report) today and set a price target of $128.00.
Erik Woodring has given his Buy rating due to a combination of factors that highlight Dell Technologies’ strong financial outlook and strategic positioning in the AI server market. The company’s guidance for FY26 EPS exceeded expectations, with a projection of $9.30, and historical trends suggest that Dell often surpasses its initial guidance, indicating a potential EPS of over $10. Additionally, Dell’s AI server revenue forecast of $15 billion was notably higher than anticipated, suggesting a conservative estimate that could be exceeded given recent contract wins.
Furthermore, Dell demonstrated robust operating margins in its Infrastructure Solutions Group, achieving an 18.1% margin, which was significantly above expectations. Despite some minor setbacks, such as lower-than-expected F1Q EPS guidance and reliance on buybacks for EPS growth, these are overshadowed by the overall positive performance and guidance. Woodring’s analysis reflects confidence in Dell’s ability to capitalize on AI adoption and maintain operational efficiency, reinforcing the Buy rating.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $140.00 price target.
Based on the recent corporate insider activity of 178 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DELL in relation to earlier this year.