Dell Technologies stock has jumped 7% after Evercore ISI added the computer company to its "Tactical Outperform" List. Dell’s stock has nearly doubled in value this year as companies have rushed to roll out AI services, which has boosted demand for Dell’s AI servers.
On Thursday, Evercore ISI analyst Amit Daryanani, who already has an Outperform rating and $165 target for Dell’s stock price, added the shares to a “Tactical Outperform” list, saying he expects favorable first-quarter results. A Tactical Outperform call suggests the analyst expects the stock to outperform the market over the near term. It’s a trading recommendation.
Earlier this week, Dell Technologies expands the Dell AI Factory with NVIDIA to include new server, edge, workstation, solutions and services advancements that speed AI adoption and innovation.
Nearly 80% are bullish on the stock versus 75% at the start of the year, even though the stock is currently trading at 33.9 times the per-share earnings expected for the next 12 months. That is expensive given the average for the past five years has been 12.6 times earnings.
Still, the coming earnings could prompt investors to assign an even better valuation, based on sales of AI-optimized systems and improved gross margins. That would push the stock even higher.
Dell Technologies is scheduled to release its earnings data after the market closes on Thursday, May 30th. Analysts expect Dell Technologies to post earnings of $1.21 per share for the quarter. Dell Technologies has set its Q1 2025 guidance at 1.050-1.250 EPS and its FY 2025 guidance at 7.250-7.750 EPS.