Dell Technologies (DELL) is one of the best-performing tech stocks in 2024, boasting a total return (price change plus dividends) of nearly 74% for the year to date through the June 12 close. This upside hasn't gone unnoticed by Wall Street pros and one group in particular thinks DELL can rally another 30% from here.
In late May, BofA Securities upped its price target on Dell stock to $180 from $130, citing strong momentum into 2025 on improving demand for the company's artificial intelligence (AI) servers and high-end storage, as well as a recovery in personal computers (PCs). BofA reiterated its price target and its Buy rating on Dell in a June 13 note.
"We see the setup into 2025 as attractive as all areas of DELL's business could be strong in unison," BofA analysts wrote in a note to clients. "We expect positive revenue and earnings per share revisions driven by the potential of strong growth in AI servers, upside from PCs and from a refreshed storage portfolio plus attach of high margin storage to a new IBM Mainframe in 2025."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
BofA's $180 price target for the tech stock represents implied upside of just over 33% to current levels.
Most analysts think Dell stock is a Buy
BofA isn't the only firm with a bullish view on the outperforming AI stock. Of the 23 analysts following Dell tracked by S&P Global Market Intelligence, 13 say it's a Strong Buy, six call it a Buy, two have it at Hold and two say it's a Sell or Strong Sell. This works out to a consensus Buy recommendation.
Argus Research and CFRA Research are among those with Buy ratings on Dell and price targets of $150 and $176, respectively.
"Following a down year in fiscal 2024, Dell appears well-positioned for growth and margin expansion as markets normalize over the course of the January 2025 fiscal year," Argus Research analysts Jim Kelleher and Andrew Lesko wrote in a June 4 note. "For the longer term, and particularly as the AI server and AI PC markets gain momentum, we believe Dell is poised for outperformance and continued share gains."
"The commercial PC environment showed improvement exiting the quarter, reinforcing our bullish thesis around the coming multi-year refresh cycle catalyzed by Windows 11 migration and AI's transformative impact," CFRA Research analyst Shreya Gheewala said in a May 31 note following Dell's Q1 earnings beat.
Related Content
-
Setting Objective Criteria for Employee Bonuses Aligned With Company GoalsWhen employees win, the company wins.
-
A Modern Guide to Money Etiquette: Gifts, Tips, Splitting Bills and MoreWhat is modern money etiquette? The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
-
Potential Ripple Effects of Taxing Unrealized Capital GainsThe proposed tax on unrealized gains would be limited to those with a net worth above $100 million, but some see a broad impact on markets and businesses.
-
Succession Musts: Thoughtful Planning and Frank DiscussionsWhen it comes to passing on the family business, you don't want anyone to be surprised about who will control or inherit the business after the owner's death.
-
How to Navigate Finances as a Blended FamilyIf you’re planning to become part of a blended family, consider these financial issues as you and your spouse start a new life.
-
Here's How to Find Your Way Out of the Inherited IRA MazeTo navigate complex rules on inherited IRAs and RMDs, start by breaking down key terms and common scenarios. A clearer picture of your next steps will emerge.
-
Stock Market Today: Stocks Rally on Strong Netflix EarningsMega-cap tech leads the charge as markets rise for a sixth straight week.
-
Why American Express Earnings Have the Dow Stock LowerAmerican Express is the worst Dow Jones stock Friday after the payments giant reported a top-line miss in its third quarter. Here's what you need to know.
-
CVS Stock Falls After Karen Lynch Ouster: What to KnowCVS stock is lower Friday after the embattled healthcare company said Karen Lynch is out as CEO, effective immediately
-
Netflix Stock Jumps to the Top of the S&P 500 After Earnings. Here's WhyNetflix stock is spiking Friday after the streaming giant beat third-quarter expectations and gave an upbeat fourth-quarter outlook.
