29. September 2025
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Barclays Raises Price Target on Dell Technologies, Maintains Hold Rating
Barclays analyst Tim Long has raised the price target on **Dell Technologies Inc. (NYSE: DELL)** from **$131 to $133**, while retaining a **Hold** rating on the stock. This update reflects revised corporate forecasts and evolving demand in key product segments.
Quick Insight: While the adjustment is modest, it signals confidence in Dell’s medium-term prospects—especially in AI, infrastructure, and server demand—despite current headwinds in its enterprise server business.
1. Financial & Operational Highlights
• In its fiscal Q2 2026 release, Dell reported revenue of **$29.78 billion**, up ~19 % year-on-year—beating analyst consensus by ~$583 million.
• Earnings per share (EPS) came in at **$2.32**, slightly above expectations by $0.03.
• Barclays notes that its updated “server model” projections were adjusted using fresh results and feedback from industry peers.
2. What’s Driving the Revised Outlook
• **AI demand:** Barclays anticipates stronger demand in 2026 from AI workloads, which could help offset near-term weakness in enterprise server purchases.
• **Server recovery slower than expected:** The analyst flagged that the bounce back in enterprise server demand has lagged initial forecasts, leading to a downward revision of 2025 earnings.
• The updated price target accounts for these offsets: modest near-term pressure balanced by potential upside in infrastructure and AI support.
3. Rating & Risk Perspective
• Although the target is raised, Barclays is **not upgrading** its rating—it stays at **Hold** (sometimes also called “Equal Weight” in their terms). This suggests they see limited upside from current levels.
• Risks include continued softness in enterprise spending, supply chain disruptions, and competitive pressures from other infrastructure and cloud providers.
• If the AI demand plays out stronger than expected—or Dell’s execution improves—the stock could breach that $133 target.
Final Thoughts
Barclays’ modest target raise shows calibrated optimism: Dell is weathering some headwinds, especially in its server division, but the rising demand in AI infrastructure gives it a compelling potential upside. Investors should watch upcoming guidance, infrastructure orders, and margins closely.
