Dell Technologies Inc. (NYSE:DELL) shares closed more than 7% lower on Friday following the company’s disappointing Q4 results, with EPS of $1.72 coming in worse than the Street estimate of $1.94.

While the results missed the expectations, analysts at Deutsche Bank said they remain encouraged by the strong demand environment across the company’s businesses. The headwinds that led to the miss, higher logistical costs and limited supply are impacting companies across the hardware industry and the analysts don't think these indicate missed execution or lost market share for the company.

However, considering the healthy demand environment and the Q1 guide, the analysts believe there is some surprise that the company is pointing towards its long-term growth target of 3-4% as a starting point for 2023 revenue growth. The analysts believe this outlook will likely end up being conservative if supply-chain dynamics improve throughout 2023 based on strong demand trends and robust backlogs.