TLDR
- Dell stock hit an all-time high of $219.50, up 2.09% on the day
- The stock has gained 132% over the past year and 73% year-to-date
- BofA Securities raised its price target to $246, maintaining a Buy rating
- Evercore ISI also lifted its target to $240, citing a $1.4B AI infrastructure deal with Boost Run
- Dell’s AI server business now accounts for 27% of total sales
Dell Technologies hit a fresh all-time high of $219.50 on Monday, continuing a run that has seen the stock more than double over the past 12 months.
The stock was up around 2% on the day, giving the company a market cap of $142.4 billion. That’s a long way from where it started the year, with Dell up 73% year-to-date alone.
The momentum comes as Wall Street continues to upgrade its view on the stock. BofA Securities raised its price target from $205 to $246 on Monday, keeping its Buy rating in place.
BofA based its new target on roughly 16 times its 2027 earnings per share estimate of $15.42. The firm said a premium to Dell’s historical valuation range is justified given its exposure to AI across servers, storage, and PCs.
Despite the big run, Dell’s PEG ratio sits at just 0.66, which analysts say suggests the stock is still trading at an attractive level relative to its earnings growth.
Evercore ISI also raised its target, moving to $240 from a prior level, pointing to a $1.4 billion purchase agreement with Boost Run as a key catalyst.
The Boost Run Deal
That deal has been one of the more talked-about catalysts for Dell lately. Boost Run agreed to buy $1.44 billion worth of Dell hardware and software to support enterprise AI demand.
The agreement comes ahead of Boost Run’s planned merger with Willow Lane Acquisition Corp., which will create a new publicly listed entity under the ticker “BRUN.”
For Dell, it’s another data point showing real-world demand for its AI infrastructure products.
AI servers now make up 27% of Dell’s total sales, and that number is expected to keep climbing.
Analyst Caution Still in the Mix
Not everyone is fully on board. Wolfe Research initiated coverage of Dell with a Peerperform rating, flagging concerns around memory pricing and supply chain risks.
The firm acknowledged Dell’s strong AI server revenue but said those risks are worth watching.
BofA also listed its own downside scenarios, including a faster economic slowdown, a stronger US dollar, tariff pressure, and potential supply issues with Intel processors.
Competitive pressure from rivals also remains a risk the firm flagged.
On the capital structure side, Dell recently converted over 4.2 million Class B shares into Class C common stock. The company now has 325.6 million Class C shares and 47.8 million Class B shares outstanding.
InvestingPro data notes that while the stock has had a strong run, it may be approaching overvalued territory relative to its Fair Value estimate at current levels.
BofA’s new $246 price target is now the highest published target on the street from the firms covered in these reports.
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