Dell: Wells Fargo starts with 'outperform' rating
(CercleFinance.com) - US brokerage Wells Fargo is initiating coverage of Dell Technologies with an "outperform" rating and a target price of 68 dollars.
While the broker says it sees more downside risk than upside potential to estimates in the near term, due to toughening comparisons and the pass-through of deflationary component costs, Wells Fargo also believes the share has a long-term attractive risk/reward ratio given the company's broad-based software-to-hardware portfolio.
This depth favorably positions the IT company to capitalize on the long-term architectural shift to software-defined hybrid multi-cloud, and will also enable the computer maker to participate in the multiyear digital transformation, it adds.
With these trends, Wells Fargo believes that Dell will be able to continue to win market share in servers, enterprise storage, and commercial PCs.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
While the broker says it sees more downside risk than upside potential to estimates in the near term, due to toughening comparisons and the pass-through of deflationary component costs, Wells Fargo also believes the share has a long-term attractive risk/reward ratio given the company's broad-based software-to-hardware portfolio.
This depth favorably positions the IT company to capitalize on the long-term architectural shift to software-defined hybrid multi-cloud, and will also enable the computer maker to participate in the multiyear digital transformation, it adds.
With these trends, Wells Fargo believes that Dell will be able to continue to win market share in servers, enterprise storage, and commercial PCs.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.