Dell a buy on AI and bolstered demand: 5 big analyst picks
Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: an Overweight initiation for Super Micro Computer, and upgrades for Dell, CVS, Globus Medical , and Rackspace Technology.
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Dell (NYSE:DELL) shares were rising nearly 2% pre-market Tuesday after Daiwa Securities upgraded the PC maker to Outperform from Neutral and raised its price target to $80.00 from $50.00, as reported in real time on InvestingPro.
The analysts noted that Dell's Q2/24 earnings report last month exceeded consensus expectations with strong revenue of $22.9 billion, which beat estimates by $2.1B. EPS, at $1.74, also came in better than expected, driven by higher revenue, lower component costs, and cost control, says Daiwa.
The analysts wrote that the recent macro demand slowdown appears to be easing, and argue, «Two new big positives are macro tech demand improving and AI sales ramping, both aid long term growth potentials» — including a $2B order pipeline for Dell's PowerEdge 9680 server.
The move follows two recent Dell downgrades after a big earnings-powered share run-up early this month, with Barclays in particular arguing that AI may not be enough to offset ongoing macro pressures.
Overall, the stock is up nearly 70% year to date, and was recently changing hands at $70.46 in the premarket.
CVS Health (NYSE:CVS) was upped to Outperform at Evercore ISI on Tuesday with a slightly raised price target of $83.
The analysts wrote that they «see operational issues improving and an attractive current valuation» at the drugstore behemoth, adding:
«CVS, like many MCOs [managed care organizations], is a complex
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