Dell Initiated With Buy Rating at Melius

Analysts at Melius started coverage on Dell (NYSE:DELL) with a Buy rating and a price target of $95.00. The analysts’ perspective is based on a valuation of 12 times the projected fiscal 2026 earnings per share. They believe Dell will benefit significantly from the "AI Halo Effect" in most of its product categories.

Despite a substantial 80% increase in shares this year, Dell's stock is currently valued at only 11 times the consensus earnings. This is seen ahead of a potential upgrade cycle in PCs and the growing benefits from Dell's expansion into the AI server market. According to the analysts, Dell's market-leading scale, effective management, and status as a consistent share gainer justify a higher valuation compared to its peers.