Dell Technologies(US:DELL) Hua Er Jie Jian Wen·2025-10-08 20:37Core Viewpoint - Dell Technologies' stock price has been rising significantly, with multiple investment banks raising their target prices, reflecting strong confidence in the company's AI business growth prospects [1][9]. Group 1: Target Price Adjustments - UBS raised Dell's target price from $155 to $186, a 20% increase, while maintaining a buy rating [1]. - Mizuho Securities increased its target price from $160 to $170, and Melius Research set a target price of $200 [1][9]. - Raymond James maintained a target price of $152, emphasizing that AI-related business activities have exceeded expectations [11]. Group 2: Financial Guidance and Performance - Dell has significantly raised its long-term financial guidance for fiscal years 2026 to 2030, indicating clear growth signals [4]. - The company expects a compound annual growth rate (CAGR) of 7-9% in revenue, up from a previous forecast of 3-4% [5]. - Dell plans to return approximately 80% of its annual free cash flow to shareholders and aims for at least a 10% annual increase in quarterly dividends until fiscal year 2030 [4]. Group 3: AI Business Growth - The core growth driver for Dell is its Infrastructure Solutions Group (ISG), particularly the AI server business, which is expected to grow at a CAGR of 20-25% [6][12]. - ISG's overall CAGR is projected to be 11-14%, while the Client Solutions Group (CSG) is expected to achieve stable growth of 2-3% [7][8]. - Analysts believe that Dell's leadership in the enterprise AI market will lead to sustainable revenue and profit growth [1][9].