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Dell Technologies' Relatively Better Management of Supply Scarcity Driving Share Gains, Earnings Growth, Morgan Stanley Says

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Dell Technologies (DELL) is managing the semiconductor supply chain shortage better than peers, which is helping capture mission critical demand and drive share gains, pricing power, and "unprecedented" earnings growth, Morgan Stanley said in a Monday research report.

These factors are more than offsetting input cost inflation and margin headwinds, but the duration of the ongoing growth momentum remains uncertain as channel checks indicate mixed core growth, analysts wrote.

The brokerage said its renewed view of the company is also attributable to the company's expectations of exiting fiscal 2027 with demand outpacing supply amid clear pull-forward from large enterprises, according to the note.

The brokerage said it upgraded the stock to equalweight from underweight and boosted its price target to $448 per share from $170.

Price: $460.88, Change: $+39.97, Percent Change: +9.50%

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