Dell Technologies Inc (NASDAQ:DELL)'s investor event struck a “constructive” tone on the company’s demand outlook, market share positioning and earnings growth expectations, according to analysts at Citi.
In a note to clients on Wednesday, the analysts stated that Dell management reaffirmed their near-term outlook and increased their long-term targets, which were better than investor expectations.
"Underpinning management’s confidence in durable demand growth was the growth in inference which is expected to generate significant data center modernization opportunity ahead, coupled with Dell’s capability in engineering, rapid scale deployment, strong supply chain partnerships, services/support and financing/balance sheet strength to support a wide range of customers," the analysts wrote.
They forecast revenue growth for Dell of 7% to 9%, up from 3% to 4% previously, and earnings per share growth of 15% plus, better than their earlier estimate of 8% plus.
The analysts increased their target price on Dell stock to $175 per share, while maintaining a ‘Buy’ rating, saying they “walked away incrementally confident on Dell’s position to capitalize on the opportunity ahead”.
Dell shares climbed 7% to $161.59 in midday trading on Wednesday.