DELL Stock Slides despite Praise from Wall Street

Globe and Mail

a day ago

Yesterday, Dell Technologies (DELL) reported strong revenue results and provided a positive outlook, which suggests that the company is handling tariff issues effectively and increasing its share of the AI market. However, shares of the tech company are down at the time of writing. This is despite also receiving analyst praise for its performance and ability to benefit from increased AI spending in a tough economic environment.
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Indeed, five-star Evercore ISI analyst Amit Daryanani, who rates Dell as Outperform with a $140 price target, said that Dell managed to limit the impact of tariffs and kept prices stable, unlike some of its competitors. He also pointed out that Dell's AI server business is growing fast, as its backlog increased by $5 billion from the previous quarter to $14.4 billion. As a result, he believes that customers are willing to pay more for Dell's strong supply chain and better execution, which should help the company gain market share even as a premium provider.
Separately, five-star Wells Fargo analyst Aaron Rakers also kept an Overweight rating and a $150 price target on the stock. He said that Dell's results and outlook support the idea that the company is well-positioned for Nvidia's (NVDA) upcoming Blackwell chip cycle. Rakers also noted that Dell is handling its supply chain well, benefiting from a wave of commercial PC upgrades, and generating healthy free cash flow, which it is using to give money back to shareholders.
Is DELL Stock a Buy?
Overall, analysts have a Strong Buy consensus rating on DELL stock based on 10 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average DELL price target of $134.55 per share implies 20% upside potential.