Major Bank Ratings | JPMorgan: Significantly Raises Dell Technologies' Target Price to $500, Rating "Overweight"

Golden Ten Data, June 2｜JPMorgan released a report stating that Dell Technologies has once again significantly raised its outlook for fiscal year 2027. The demand environment continues to far exceed expectations, and the order pipeline has been further extended, providing visibility for revenue expectations in the second half of the fiscal year. Although the company remains prudent, taking into account supply factors and the possibility of demand slowing due to early deliveries. The strong fundamentals are reflected in several driving factors: (1) The outlook for Dell’s proprietary IP storage business has improved, which also supports an uplift in gross margin expectations for non-AI businesses; (2) Benefiting from the corporate device upgrade cycle and preparations for agent-based AI workloads, the traditional server product portfolio remains strong; (3) CSG business market share has risen, and driven by revenue scale, profitability has increased significantly; (4) AI orders have once again delivered a strong quarterly performance, reaching 24 billion USD, currently supporting a backlog of 51 billion USD; the outlook for AI revenue has been revised up to 60 billion USD, and as supply visibility improves, this figure may be further increased. A certain exchange now gives Dell a target P/E ratio of 25 times, and based on improved visibility of a sustained compounded earnings growth rate, has significantly raised the target price from 280 USD to 500 USD, with a rating of “Overweight.”