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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
-
Don't Waste Your Money on Bad Gifts. Try This Instead.Holiday Happiness These strategies, backed by behavioral finance, can help you find presents that your loved ones will truly enjoy.
-
5 Unique Book-Inspired Trips Across AmericaThere are five great trips to take across America that can immerse you in the culture of your favourite books.
-
I'm a Financial Planner: This Retirement GPS Helps With Navigating Your Drawdown PhaseReady to retire? Here's how to swap your 'peak earnings' mindset for a 'preserve-plus-grow' approach instead of relying on the old, risky 4% rule.
-
Donating Stock Instead of Cash Is the 2-for-1 Deal You'll Love at Tax TimeGiving appreciated stock or using a donor-advised fund (DAF) this year would be smarter than writing a check to support your favorite causes. Here's why.
-
Traveling With Purpose: What Zambia and Zimbabwe Taught Us About Slowing DownDon't treat retirement trips like they're an exercise in ticking off boxes. Slowing down and letting adventure unfold can create more meaningful memories.
-
Investment Expert: Is Your Retirement Portfolio Too Late to the Profit Party?If you're following the usual retirement investment model, you could be missing out on a potential profit period that companies see in the run-up to their IPOs.
-
Losing Your Job? A Financial Planner's 6 Steps to Survive and ThriveWhether pink slips are just rumors at your company or layoffs have already landed, there are things you can do today to make the best of a tough situation.
-
Oil Prices vs Investor Returns: It's What's Beneath the Surface That CountsEngineering, geology and operating discipline can determine the success of oil and gas projects as much as the cost per barrel.
-
Dow Soars 493 Points in Fed-Fueled Bounce: Stock Market TodayNew York Fed President John Williams struck a dovish tone Friday, which eased Wall Street's worries over a potential December pause.
-
Here's What Being in the 2% Club Means for Your RetirementOnly 2% of the population has both a pension and more than $1 million saved. This is a great place to be, but also requires advanced tax planning.
