BofA Cuts DELL Price Target to $160 but Keeps Buy Rating Ahead of Earnings

Dell Technologies Inc. (NYSE:DELL) is one of the Must-Watch AI Stocks on Wall Street. On November 20, BofA Securities reduced its price target on the stock to $160.00 from $170.00 while maintaining a Buy rating. The price target cut comes ahead of the company’s fiscal third-quarter earnings report scheduled for November 25.

The firm is cautiously positive on Dell, citing near-term margin pressure from rising memory costs. However, it anticipates the company to manage this through pricing and Opex controls.

BofA is particularly concerned about DRAM and NAND pricing, anticipating Dell’s Infrastructure Solutions Group operating margins to fall by 11 basis points in fiscal 2027, and Client Solutions Group margins to witness a more substantial 184 basis point decline.

“Dell reports F3Q26 on 11/25 and the key focus for investors will be margin resilience heading into C26 given immense increases in memory costs. We perform a cost analysis to show the impact DRAM/NAND costs have on Dell’s segments on a GM, OP, and total company basis. Assuming DRAM/NAND price increases in F1q 1, realistic pricing taken by Dell and Opex reductions, we calculate a -129bps, -76bps, -$0.65 to total GM, OM, and EPS in F27E (vs Status Quo) respectively. For ISG, OMs are impacted by -11 bps in F27E and -184bps for CSG margins.”

BofA forecast Dell’s Q3 results to be in-line with guidance and Street estimates, with minimal impact from DRAM/NAND pricing due to timing of inventory. Despite the adjustments, the firm’s Buy rating reflects early-stage AI adoption and tailwinds.

“Our analysis suggests F4Q OMs and EPS are impacted -56bps/-$0.01, as Dell will likely price and reduce Opex to offset memory increases. For F4Q and F26, Dell likely maintains guidance despite cost pressures as Dell typically guides conservatively. Reit. Buy as we are in early stages of AI adoption and tailwinds.”

Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.

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