What Wall Street Analysts Think of Dell's Stock Ahead of Earnings

Key Takeaways

• Dell is set to report third-quarter earnings after the closing bell Tuesday, with analysts expecting sales and profit gains from the year prior.
• Most analysts covering Dell tracked by Visible Alpha hold a "buy" or equivalent rating for the stock, but their consensus price target implies little upside.
• Dell could see more growth next year as AI server sales accelerate, Morgan Stanley analysts said.

Dell (DELL) is set to report third-quarter earnings after the market closes Tuesday, with analysts anticipating sales and profit gains from the year prior, but little further appreciation for the stock.

Of the 10 analysts covering the stock tracked by Visible Alpha, eight have a "buy" or equivalent rating, compared to two "hold" ratings. However, their consensus price target of $145 would imply less than 1% upside from Friday's closing price. 

Wall Street expects Dell to report third-quarter revenue of $24.68 billion, an 11% rise year-over-year, and net income of $1.02 billion or $1.42 per share, up from $1 billion or $1.36 per share a year ago.

Morgan Stanley analysts told clients in a note Thursday they “don’t expect much upside” from Dell’s third-quarter earnings, but suggested the company could see more growth in 2025 from artificial intelligence (AI) servers. Dell makes servers that utilize Nvidia (NVDA) AI chips, drawing a shoutout from the chipmaker in its earnings call Wednesday.

For now, results could be hindered by “sub-seasonal PC market trends” and “flattish” quarter-over-quarter AI server growth, the analysts said. Morgan Stanley holds an “overweight” rating and $154 price target for Dell.

Dell shares have gained nearly 90% since the start of the year, at $144.21 as of Friday's close.

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