Overview
- Dell shares, which were cut to Neutral by UBS analyst David Vogt over the weekend, fell about 5.5% to roughly $246 on Monday even as the S&P 500 was flat.
- UBS lifted its price target to $243 from $167, which sits about 7% below Friday’s close, and said accelerating demand for AI servers is already reflected in the price.
- The stock had surged about 99% this year and 142% over 12 months, and UBS notes it now trades near 20 times its 2026 earnings estimate after a sharp re-rating.
- Caution on Wall Street is rising, with FactSet showing Hold ratings climbing to 31% from 19% in January.
- Investors now look to Dell’s May 28 earnings for clues on AI server orders, profit margins, and any change to the full-year outlook.