Dell Technologies Inc (DELL) shares experienced a surge on Thursday, driven by positive analyst coverage from both JPMorgan and Citigroup.
JPMorgan analyst Samik Chatterjee maintained an Overweight rating for Dell and raised the price target from $155 to $160. Chatterjee’s optimism stems from Dell’s recent underperformance in the stock market, which he believes presents an opportunity for upside potential. Chatterjee noted that Dell’s share price decline in recent months was due to investor concerns about margin pressures potentially arising from increased competition in the AI server market.
However, Chatterjee added Dell to JPMorgan’s Analyst Focus List (AFL), signaling a reevaluation of the firm’s coverage of Hardware and Networking companies.
Adding to the positive sentiment, Citigroup analyst Asiya Merchant also maintained a Buy rating for Dell on Thursday. While Merchant lowered the price target from $170 to $155, she also raised revenue estimates, citing a “modestly improving top-line, driven by positive datapoints on recovering general-purpose-infrastructure coupled with improving GPU availability.”
Looking further into the future, Merchant anticipates that margin pressures from rising component prices will be partly offset by moderating operating expenses. She also expects to see improved margins from Dell’s expansion into enterprise AI and increased storage and services offerings in 2026. “Given recent share price retrenchment (-25%), we view current risk/reward as attractive. We maintain our Buy rating,” Merchant stated.
Dell is scheduled to report its financial results for the second quarter after the market closes on August 29. The company is expected to report earnings of $1.68 per share on revenue of $24.139 billion, according to estimates from Benzinga Pro.
At the time of publication, Dell shares were up 7.43% at $110.60, according to Benzinga Pro.
