An analyst at Goldman Sachs has initiated coverage of Dell Technologies (DELL:NYE) shares with a Buy recommendation. The analyst forecasts a cyclical bottom in the PC/Server sector, which will enhance near-term prospects. Goldman has set a $43 price target on DELL stock shares, indicating a possible upside of 15.53%.
The revenues of Dell’s Client Solutions Group (CSG) were affected by a slowdown in the PC market and a fall in Q4 demand. In addition, increased rivalry and increased industrial channel inventories were obstacles. Despite these obstacles, Goldman anticipates that Dell will profit from the shift towards enterprise expenditures in hybrid multi-cloud, which should balance the headwinds caused by the migration of workloads to the public cloud. In addition, the corporation is anticipated to profit from the transition towards mobile computing devices such as smartphones and tablets.
Goldman anticipates that Dell’s new product innovations, such as APEX and the consumption-based revenue model, would improve top-line visibility and decrease customer attrition. Moreover, the sustained success of Dell’s Infrastructure Solutions Group, which includes Servers, networking, and Storage revenue, is projected to drive total revenue and earnings.
While Goldman is positive, it is important to consider what other analysts believe about DELL stock. Stock Target Advisor reports that DELL stock has received nine Buy recommendations and two Hold recommendations, resulting in a consensus rating of Strong Buy. The average analyst price target is $48.29, indicating a potential upside of 25.56%.
