Dell (SYM: DELL) has become one of the most explosive stocks on the market.
Over the last two days, the tech giant ran from a low of about $130 to. $155. From here, it could easily refill its bearish gap at around $180.
Helping, Morgan Stanley just reiterated Dell is a “top pick” for the firm.
“Mgmt meetings reconfirm Dell’s competitive advantages, provide clarity on April Q pain points, and give us greater confidence in the path forward post-F1Q earnings; Reiterate Top Pick,” said the firm, as quoted by Seeking Alpha.
Bank of America also says the stock is poised for growth thanks to PC demand, and growing demand for artificial intelligence servers. The firm has a buy rating on the stock with a price target of $180 a share, noting:
“We believe that DELL is receiving a premium for its engineering and value add in AI servers despite not being the price leader of the product. Over time, AI server margin should improve as deferred revenue from Services are higher in margins as well as mix shift from Tier 2 (lower margins) to Enterprise (higher margins).”
Even better, Dell just recently announced a dividend of $0.445, which is payable on August 2 to shareholders of record as of July 23.
