Morgan Stanley Cuts Dell Price Target to $101, Assigns Underweight Rating
Morgan Stanley reduced its price target on Dell from $111 to $101 and assigned an Underweight rating, forecasting solid but not exceptional January-quarter results and cautious April guidance due to IT hardware headwinds. Dell extended its McLaren Racing partnership, supplying AI infrastructure that powered real-time simulations for 2024-25 championships.
1. Morgan Stanley Downgrades Dell
Morgan Stanley cut its price target on Dell from $111 to $101 and moved the stock to an Underweight rating. The firm cited persistent IT hardware sector weakness and prior headwinds in off-cycle coverage as key drivers for the downgrade.
2. Cautious Quarterly Outlook
Analysts forecast Dell’s January quarter to deliver solid but not exceptional revenue and earnings growth, with guidance for April expected to reflect continued caution. The bank highlighted sector pressures from inventory digestion and subdued enterprise spending in cloud and storage.
3. McLaren Partnership Extension
Dell extended its multi-year Innovation Partner agreement with McLaren Racing, which began in 2018, to continue supplying AI infrastructure, servers, and PCs. The Dell AI Factory platform enables trackside data analytics, simulations, and digital twins, credited with supporting McLaren’s 2024 and 2025 Constructors’ Championships.