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.