Loop Capital initiated coverage on shares of Dell Technologies (NYSE:DELL) with a Buy rating and a price target of $125. The firm anticipates a significant appreciation potential for the tech company's stock, citing a potential 37% increase in value.
According to Loop Capital, Dell is poised to exceed the Street's financial estimates through the calendar year 2026 and fiscal year 2027. The optimism is based on the company's leading position in two key growth areas: Generation AI servers and a PC refresh cycle that could see higher average selling prices due to AI-configured PCs.
The investment firm also suggested that Dell has the opportunity to change the narrative surrounding its stock, which could lead to a substantial re-rating in valuation. Loop Capital believes that Dell is at the forefront of significant catalysts that will structurally increase its earnings per share (EPS) beyond current market expectations.
Furthermore, Loop Capital sees a chance for Dell to capture a larger share of the Fortune 1000 information technology spending. This outlook is based on industry trends that Dell is well positioned to capitalize on, although these factors have not yet been included in the firm's financial projections.
The $125 price target set by Loop Capital is based on 12.5 times the firm's projected EPS of $10 for Dell in the calendar year 2026 and fiscal year 2027. This valuation reflects the firm's confidence in Dell's growth prospects and its strategic position in the evolving tech landscape.
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