-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our price target from $166 to $239, 16x our FY 28 (Jan.) EPS view, above DELL's three-year average (~11x) on AI upside. We raise our FY 27 EPS view by $0.31 to $12.80 and FY 28's by $0.49 to $14.91. Global AI data center spending continues to strengthen, and we expect DELL will continue capitalizing on this momentum as it builds its reputation in the AI server space. We also think server peer SMCI's recent export control issues could see some of its non-hyperscaler business shift toward DELL, providing upside to recent guidance, while recent takeover rumors (despite being denied by NVDA) highlight DELL's value as a critical infrastructure provider and provide further support for an above-historical multiple. The ongoing memory shortage remains a key risk, but with supply fully secured to support FY 27 guidance, we doubt a significant hit to the company's near-term margin outlook. We expect its relationship with memory makers will allow for favorable supply allocation vs. peers next year as well.