CFRA Maintains Buy Recommendation On Shares Of Dell Technologies Inc.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target to $140 from $81 on a P/E of 16.3x our FY 26 (Jan.) EPS view, above its three-year historical forward average, reflecting a PC market rebound. We up our FY 25 EPS view to $7.61 from $7.16 and set FY 26’s at $8.60. DELL posted Q4 EPS of $2.20 vs. $1.80, a $0.48 consensus beat. Sales fell 11%, better than feared, with a 12% decline from Client Solutions (commercial -11%, consumer -19%), and a 6% decline from Infrastructure Solutions (servers/network -2%, storage -10%), on lower PC unit sales, partly offset by higher average selling prices. AI-optimized server orders were +40% Q/Q and the AI backlog exited FY 24 at $2.9B, highlighting long-term potential. We see DELL benefiting from AI tailwinds and improving margins as storage mix and premium PC pricing improves. We expect a seasonal 1H 25 rebound on the PC refresh cycle and additional EPS upside (+10% in FY 25) from cost-saving initiatives as component prices stabilize. We note DELL’s net debt of $19.4B and see FCF of $4.5B in FY 25.

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