Evercore Raises Dell Target Price to $650, Maintains as Top Pick
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Evercore raised its Dell Technologies price target from $575 to $650, maintaining a "top pick" rating — and laid out a path to $1,000, arguing the market deeply underestimates AI's structural reshaping of the hardware stack.
The stock has already rallied — why stay bullish?
Analyst Amit Daryanani acknowledged Dell shares have risen sharply, but argued further upside remains.
He cited four drivers: accelerating neocloud deployments, enterprise AI adoption still in early innings, supply-chain challenges helping Dell gain share, and disciplined capital allocation.
This means → the call is not about chasing momentum — it is a bet that the AI hardware cycle is only in the first half, with room for both growth and margin expansion.
How much higher can earnings estimates go?
The Street's FY27 EPS consensus sits at roughly $25.88; Daryanani sees upside, with a bull case above $30.
By FY28, he projects EPS could top $40 — driven by higher AI attach rates, continued AI server growth (upside of $85 billion in FY27 and $125 billion in FY28), storage EBIT margins expanding past 30%, and operating-expense leverage.
In plain terms = the Street's FY28 estimate is only about $31 — the analyst thinks the real number could be nearly 30% higher. That gap is the potential upside.
How does $1,000 per share work?
The math is straightforward: 25× P/E × $40 EPS = $1,000.
This means → hitting that target requires both a big earnings beat and multiple expansion — neither alone is enough.
What is the market actually missing?
Daryanani argued that the market is focused on pre-buy behavior and memory price increases, but the deeper shift is being overlooked.
He believes the IT hardware stack is at a "de-commoditization" inflection — hardware moving from price-war commodity to differentiated, premium-priced product.
This reflects a key thesis: Dell stands to benefit disproportionately from this shift — not just in revenue and EPS growth, but in valuation multiple expansion as well.
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