Goldman Sachs analyst Katherine Murphy began coverage of Dell Technologies Inc. on January 13, assigning the stock a Buy rating and setting a price target of $165.00.
"We assume coverage of Dell Technologies (DELL) with a Buy rating (unchanged) and a 12-month target price of $165 reflecting 12x NTM+1Y EPS (vs. $185 reflecting 14x prior)," Murphy stated.
Analysts at the firm view Dell as a leading beneficiary in the artificial intelligence sector, with expectations that strength in AI servers and a recovery in data center hardware will drive performance. They noted that cyclical improvements in the company's core data center business provide additional support.
Even with conservative assumptions regarding personal computer demand and profitability, the firm projects Dell will exceed current consensus estimates for sales and earnings. This outlook is attributed to ongoing momentum in AI servers, a rebound in core server and storage sales at improved margins, and the company's comparative advantage in managing commodity cost pressures.
Dell's scale, extensive direct sales network, and diversified business mix contribute to its ability to handle cost challenges more effectively than competitors, according to the analysis.
Dell Technologies, traded on the New York Stock Exchange under the symbol DELL, supplies information technology solutions such as servers, storage systems, networking equipment, and personal computing devices to global business and consumer markets.