BofA Cuts DELL Price Target to $160 but Keeps Buy Rating Ahead of Earnings

Dell Technologies Inc. (NYSE:DELL) is 1 of the Must-Watch AI Stocks connected Wall Street. On November 20, BofA Securities reduced its terms people connected the banal to $160.00 from $170.00 portion maintaining a Buy rating. The terms people chopped comes up of the company’s fiscal third-quarter net study scheduled for November 25.

The steadfast is cautiously affirmative connected Dell, citing near-term borderline unit from rising representation costs. However, it anticipates the institution to negociate this done pricing and Opex controls.

BofA is peculiarly acrophobic astir DRAM and NAND pricing, anticipating Dell’s Infrastructure Solutions Group operating margins to autumn by 11 ground points successful fiscal 2027, and Client Solutions Group margins to witnesser a much important 184 ground constituent decline.

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“Dell reports F3Q26 connected 11/25 and the cardinal absorption for investors volition beryllium borderline resilience heading into C26 fixed immense increases successful representation costs. We execute a outgo investigation to amusement the interaction DRAM/NAND costs person connected Dell’s segments connected a GM, OP, and full institution basis. Assuming DRAM/NAND terms increases successful F1q 1, realistic pricing taken by Dell and Opex reductions, we cipher a -129bps, -76bps, -$0.65 to full GM, OM, and EPS successful F27E (vs Status Quo) respectively. For ISG, OMs are impacted by -11 bps successful F27E and -184bps for CSG margins.”

BofA forecast Dell’s Q3 results to beryllium in-line with guidance and Street estimates, with minimal interaction from DRAM/NAND pricing owed to timing of inventory. Despite the adjustments, the firm’s Buy standing reflects early-stage AI adoption and tailwinds.

“Our investigation suggests F4Q OMs and EPS are impacted -56bps/-$0.01, arsenic Dell volition apt terms and trim Opex to offset representation increases. For F4Q and F26, Dell apt maintains guidance contempt outgo pressures arsenic Dell typically guides conservatively. Reit. Buy arsenic we are successful aboriginal stages of AI adoption and tailwinds.”

Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and idiosyncratic computing devices, to businesses and consumers worldwide.

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