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Key Takeaways
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Dell shares dropped Friday, after the company's quarterly sales and full-year outlook underwhelmed.
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However, several analysts suggested it could be an opportunity to buy the dip, expecting the PC and server maker to benefit from AI demand.
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UBS said the soft guidance could have been anticipated and told clients to "buy any weakness in Dell shares."
Dell (DELL) shares dropped Friday, a day after the company’s quarterly sales and full-year outlook disappointed. Analysts said it could be an opportunity to buy the dip.
“Buy any weakness in Dell shares,” UBS analysts told clients Friday, and suggested Dell's soft revenue forecast could have been anticipated, given near-term headwinds from unfavorable market conditions.
Dell projected fiscal 2026 revenue of $101 billion to $105 billion, with the midpoint below the analyst consensus of $103.81 billion compiled by Visible Alpha.
UBS lowered its price target slightly to $150 from $158, though even at that level, it would represent a nearly 50% gain from Friday's intraday price around $102. Dell shares were down about 6% and have lost close to 12% since the start of the year.
JPMorgan analysts, who reiterated their $150 price target, said they still expect server makers like Dell to benefit from booming demand for AI infrastructure. They added a rebound in PCs and AI PCs could also provide further upside to their estimates.
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