Evercore Raises Price Target on Dell Technologies Stock Amid AI Growth Outlook
Amit Daryanani, a senior analyst at Evercore, has raised his price target for Dell Technologies (DELL) to $650 per share while maintaining a 'Buy' rating. The move reflects confidence in the company's ability to capitalize on enterprise AI adoption and neocloud infrastructure expansion. With supply chain constraints persisting, Daryanani highlights Dell’s strong logistics network as an advantage that could drive market share gains and improved profitability. Dell is also expected to benefit from high-margin AI servers and storage solutions, with EBIT margins projected above 30%. Evercore anticipates significant earnings per share (EPS) growth through disciplined capital allocation. While the current consensus EPS estimate for fiscal year 2027 stands at $25.88, Daryanani forecasts a bull case of over $40 by fiscal 2028 due to rising AI server revenue and cost efficiencies. Despite its higher forward P/E ratio compared to peers like Super Micro Computer (SMCI) and HP (HPE), the broader Wall Street consensus remains positive. The mean price target across analysts is around $580, suggesting a 'Strong Buy' rating with nearly 10% potential upside from current levels.
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Topics: AI Servers Dell Technologies Evercore Stock Price Targets