May 15 - Bank of America (NYSE:BAC) Securities maintained its "Buy" rating on Dell Technologies (NYSE:DELL) with a $150 price target ahead of the company's May 29 earnings.

Analyst Wamsi Mohan from BofA expects first-quarter revenue and EPS to land near the high end of Dell's guidance. He lifted his earnings forecast to $1.77 per share from $1.66, citing stronger PC demand and customers bringing forward purchases.

About half of Dell's sales come from its client solutions group, which Mohan says is benefiting from improving end-market trends and an uptick in AI-driven hardware. He sees PC revenue holding up as businesses rush to buy before potential tariff hikes.

Looking to fiscal 2026, Bank of America sees risks from new China-sourced tariffs that could pressure profit margins. The firm trimmed its 2026 revenue estimate for Dell's enterprise segment and cut its full-year PC revenue forecast, while forecasting overall fiscal-year 2026 sales of $103.2 billion and EPS of $9.16, down from prior projections of $105.3 billion and $9.41.

Despite tariff headwinds, Mohan believes Dell can mitigate impacts through earlier component buys and cost controls, positioning the company to report solid quarterly results.

This article first appeared on GuruFocus.

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