These 3 Dell Analysts Offer Very Different Takes On Q3 Print: Elevated Risks Vs. Lower Input Costs

Dell Technologies Inc DELL Monday reported upbeat earnings and sales for its third quarter.

Morgan Stanley On Dell

Analyst Erik Woodring maintained an Equal-Weight rating, with a price target of $45.

“F3Q beat MSe as DELL worked down server backlog, but mgmt guided FY24 revs down >10% Y/Y, a negative read-through to enterprise HW/PC demand,” Woodring wrote in a note.

“Risks remain elevated, but DELL's model is the most de-risked in our coverage, creating a potentially more positive set-up into 2023,” he added.

Check out other analyst stock ratings.

Raymond James On Dell

Analyst Simon Leopold reiterated an Outperform rating, while raising the price target from $47 to $50.

Although Dell posted better-than-expected results for its fiscal third quarter, its fourth-quarter guidance was mixed, Leopold said in a note. “The sales forecast missed consensus and reflected a 16% y/y decline at the midpoint, with a sharper than expected decline in Commercial PCs and further server softening,” he added.

The analyst stated, however, that gross margin improvement was "driven by lower input costs and logistics expenses, while “lower opex also led our EPS higher.”

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Credit Suisse On Dell

Analyst Shannon Cross reaffirmed an Outperform rating, while reducing the price target from $56 to $53.

“As expected, CSG revenue was pressured by weakness in consumer and slowing Commercial as customers shift spending to near-term needs,” Cross mentioned.

“We expect management to focus on drawing down inventory during F2024,” she added. The analyst reduced the earnings estimate for the fiscal year from $6.88 per share to $6.58 per share to reflect weaker demand.

DELL Price Action: Shares of Dell had risen by 3.70% to $42.62 at the time of publication Tuesday.