Dell Technologies (DELL) sees price target increase to $130

by MarketNewsData

TD Cowen raised its price target on Dell Technologies (DELL) to $130 from $125, while maintaining a “Hold” rating.

Rationale:

  • The revision reflects confidence in Dell’s AI-driven growth, particularly in its server segment.

  • Dell generated $8.2 billion in AI server revenue during the July quarter, helping build a backlog of $11.7 billion.

  • Strong AI demand continues to support Dell’s top-line growth, though analysts remain cautious on margin pressures and near-term profitability.

Market Context:

  • Dell’s revenue climbed on the back of AI infrastructure demand, but weaker margin performance and soft EPS guidance have tempered enthusiasm.

  • Other analysts, including Fox Advisors, recently highlighted a “mixed bag” in Dell’s results—raising long-term optimism but flagging short-term risks.

Takeaway:
While Cowen’s upgrade in price target underscores the strength of Dell’s AI growth story, the continued “Hold” rating signals caution on near-term earnings visibility and margin sustainability. Long-term prospects remain constructive, but investor sentiment may stay sensitive to quarterly profitability trends.

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