Dell (DELL) PT Raised to $185 at Loop Capital
Loop Capital analyst Ananda Baruah raised the price target on Dell (NYSE: DELL) to $185.00 (from $125.00) while maintaining a Buy rating.
The analyst commented: "Raising our PT to $185 from $125 (as well as our normalized EPS to $11.00 from $10.00) as our work along with Loop Capital Supply Chain Analyst John Donovan continues to show legitimate Gen AI progression the last 90 days which seemingly could progress through CY2025. We see the primary risks to our call as 1. the P/E that investors will pay, as the stock has materially re-rated to 18x from 10x and 2. Gen AI revenue and backlog linearity Jul Q & Oct Q (in the context of Apr Q’s $1.1B revenue guide and Jan Q’s $2.9B backlog) and the broader CY24/FY25 revenue outlook as there has clearly been a noticeable progression priced into recent week’s stock appreciation. Our $185 PT is 18x (the S&P 500 P/E) our CY2025 – CY2026 EPS of $10.00 - $11.00."