Morgan Stanley Just Upped Its Price Target on 'Top Pick' Dell Stock

Morgan Stanley Just Upped Its Price Target on 'Top Pick' Dell Stock

Wajeeh Khan

Wed, September 9, 2026 at 11:53 PM GMT+3 2 min read

• DELL -5.35%
• EVR -1.49%

Dell Technologies (DELL) shares remain a "Top Pick" and are poised for significant gains through the remainder of 2026, says Amit Daryanani, a senior Evercore analyst. In a research note today, Daryanani maintained his "Buy" rating on the tech firm and raised the price target to $650, indicating potential upside of more than 20% from here.

Evercore's bullish call is particularly significant since Dell stock is already trading at more than 4x its price at the start of 2026.

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Here's Why Evercore Is Bullish on Dell Stock

Daryanani contends that DELL stock is uniquely positioned to capitalize on a fundamental shift in the IT hardware ecosystem.

Rather than competing in a commoditized market, it is benefiting from early-stage enterprise AI adoption and the rapid expansion of neocloud infrastructure.

As supply chain constraints persist, Dell Technologies' robust logistics network should allow it to capture market share while improving profitability, he added.

Plus, integration of high-margin artificial intelligence (AI) servers and storage solutions, projected to achieve EBIT margins exceeding 30%, is expected to drive sustained operating leverage.

Note that DELL also currently pays a dividend yield of 0.47%.

AI Revenue to Drive DELL Shares Higher

According to Evercore, the aforementioned strengths, coupled with disciplined capital allocation, position Dell for significant earnings per share (EPS) growth and subsequent multiple expansion.

While consensus estimates place FY27 earnings per share at about $25.88, Daryanani has the bull case set at over $30, fueled by AI server revenue set to hit $85 billion this year and $125 billion in fiscal 2028.

A combination of "higher AI attach rates," streamlined operating expenses, and incremental capital returns creates a viable path toward fiscal 2028 earnings exceeding $40 per share, he told clients.

That said, at a forward price-to-earnings (P/E) ratio of nearly 21x, DELL shares are more expensive to own than both Super Micro Computer (SMCI) and HP (HPE).

What's the Consensus Rating on Dell Technologies?

While not as bullish as Evercore, other Wall Street firms also favor owning Dell Technologies for the remainder of 2026.

The consensus rating on DELL stock sits at "Strong Buy," with the mean price target of about $580 signaling potential upside of nearly 10% from current levels.

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com