Morgan Stanley reiterates Overweight rating on Dell

Dell Technologies (DELL) stock is seeing a boost on Monday after Morgan Stanley reiterates its Overweight rating on the computer company, emphasizing its status as a top pick for 2024 by the firm.

Yahoo Finance's Market Domination team examines Morgan Stanley's call and how analysts are viewing Dell's enterprise segments and its position in the crowded AI race.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Luke Carberry Mogan.

Video transcript

Time now for our call of the day, it's on Dell Technologies.

It's getting a lift as Morgan Stanley reiterates its top pick status on the stock noting that Dell will remain an outperforming this year.

The shares are up some 6% here.

Um And the the company is uh has a $155 price target.

Um From Morgan Stanley, the analyst over there, Eric Woodring, um talking about meetings that he and his team had with management here and he says those meetings reconfirm the company's competitive advantages.

He talks a lot also uh about the company um doing well in terms of cloud service providers that, that, that they are going to be the main core demand driver for Dell's A I servers.

In other words, cloud service providers are their clients and there's a lot of demand for Dell's servers right now.

Um And so that's helping the company's numbers.

Yeah, this is uh I mean, this is a very bullish not.

And Morgan saying they went out there to Texas, they met with management, clearly liked what they heard um for a number of reasons really.

I mean, they talk about how listen, bottom line, they look at A I server momentum.

They think those concerns about A I server margins.

Julie me, you know, we were talking about that after they reported, they think those are misguided in their words, they see a path to higher margins over time.

They talk about better storage ex execution and P CS they say are on track to benefit from enterprise refresh and just given Dell is over index the commercial market.

They think um that's gonna be one of the key beneficiaries.

They will be one of the key beneficiaries of that kind of enterprise PC refresh they expect later this year into next year.

Yeah.

And Dell has already been beneficiary, you know, to be clear here, the stock is up 88% year to date, which is pretty incredible.

I mean, we're talking, I I find it so fascinating.

Some of these sort of old tech companies that now are reinvigorated because of the um A I wave if you will and Dell is one of the prime examples.

Dell has a great A I to talent clear investors are really buying it.

And Morgan Stanley is saying, listen, they would, they would take advantage of recent post earnings under performance by the dip.

They said on what they say is a leading A I infrastructure player.

Um So very bullish note targets 155 or they even outline a bull case where the target they say go to 200 so big fans.