UBS Raises Dell Technologies PT to $155, Maintains Buy Rating

UBS Raises Dell Technologies PT to $155, Maintains Buy Rating

Swiss investment bank UBS has raised its price target for Dell Technologies (DELL) to $155 from $145, while maintaining a Buy rating. The move comes on the heels of strong artificial intelligence (AI) server revenue that drove quarterly results above expectations [1]. The technology giant, currently valued at $90.7 billion and showing a remarkable 31.8% return over the past six months, is trading slightly above its InvestingPro Fair Value.

Dell reported revenue of $29.8 billion, exceeding UBS’s estimate of $29.1 billion, with AI server revenue reaching $8.2 billion compared to the analyst’s $7 billion projection. The company posted earnings per share of $2.32, surpassing UBS’s forecast of $2.25. With trailing twelve-month revenue of $101.5 billion and a PEG ratio of 0.86, Dell shows strong growth potential relative to its current valuation, according to InvestingPro data [1].

Despite the positive earnings report, Dell’s stock fell 5% post-earnings due to conservative Q3 guidance, which overshadowed the raised full-year $107B revenue target. The stock currently trades at 13.97x forward P/E and 0.82x P/S, significantly below high-growth tech averages, indicating a potential undervaluation [2]. Analysts have responded by raising price targets, with UBS lifting its estimate to $155 and maintaining a Buy rating [1].

The recent earnings report underscores Dell’s robust performance, with revenue surging 19% year-over-year to $29.8 billion, driven by a 69% growth in AI server shipments under its Infrastructure Solutions Group (ISG) [2]. The ISG’s $12.9 billion in revenue and 18.1% operating margin highlight its role as a profit engine, supported by strategic partnerships with NVIDIA and AMD. Despite near-term margin pressures and soft guidance, Dell’s AI infrastructure business is a long-term growth engine, with 69% year-over-year revenue growth in Q2 and a 44% overall ISG revenue increase [2].

Dell Technologies Inc. reported strong financial results for the second quarter of fiscal year 2026, exceeding analyst expectations with an earnings per share (EPS) of $2.32, surpassing the forecasted $2.29. The company also achieved a record revenue of $29.8 billion, which was higher than the anticipated $29.2 billion [2]. These results underscore Dell’s ability to surpass market expectations, reflecting the company’s financial health and operational success.

References:
[1] https://www.investing.com/news/analyst-ratings/dell-stock-price-target-raised-to-155-from-145-at-ubs-on-ai-momentum-93CH-4216085
[2] https://www.ainvest.com/news/dell-earnings-beat-stock-decline-mispricing-opportunity-2508/