According to Zhongtong Finance, on Monday, the technology giant Dell Technologies (DELL.US) received attention after Morgan Stanley reiterated its "best choice" status with the company's management. Morgan Stanley analyst Erik Woodring gave Dell a "shareholding" rating with a target price of $155. The analyst wrote in a report: "The management meeting once again confirmed Dell's competitive advantages, clarified pain points in April, and gave us more confidence in the earnings outlook after the first quarter."

Woodring said the meeting gave him "more confidence" in Dell's development in the field of AI servers, because Dell's engineering capabilities should "continue and even accelerate." In addition, storage demand is slowly improving, and Dell is taking necessary measures to compete, with results expected to be seen later this year and in 2025. Woodring said that with the rebound of the personal computer market, Dell's customer solutions department may also improve. "In our view, these factors may accelerate revenue and profitability revisions, and drive further multiple expansions in the next 12 months. We remain confident in the profitability of $10.30-12.50 in FY26 (expected EPS in the base scenario and bull market), while the market consensus is only $9.13, supporting a target price between $155 based on our current valuation/base scenario PE and $200 based on a bull market scenario valuation. Therefore, we will use the recent poor post-earnings performance and clear selling pressure conveyed by major shareholders (short-term negative, long-term positive) to "buy" shares of a leading AI infrastructure company at a low point. The current stock price of the company is only 11-13 times the FY26 PE ratio, with a certain discount compared to peers.

Woodring added, "In our opinion, these factors may accelerate the momentum of revenue and profit revisions, and drive further multiple expansions in the next 12 months, and we still have confidence in the profitability of $10.30-12.50 in FY26 (expected EPS in the base scenario and bull market), while the market consensus is only $9.13, which supports our target price between $155 based on current valuation/base scenario PE and $200 based on bull market scenario valuation. Therefore, we will use the recent poor post-earnings performance and clear selling pressure conveyed by major shareholders (short-term negative, long-term positive) to 'buy' shares of a leading AI infrastructure company at a low point.