Key Takeaways

Dell ( DELL ) shares dropped Friday, a day after the company’s quarterly sales and full-year outlook disappointed. Analysts said it could be an opportunity to buy the dip .

“Buy any weakness in Dell shares,” UBS analysts told clients Friday, and suggested Dell's soft revenue forecast could have been anticipated, given near-term headwinds from unfavorable market conditions.

Dell projected fiscal 2026 revenue of $101 billion to $105 billion, with the midpoint below the analyst consensus of $103.81 billion compiled by Visible Alpha.

UBS lowered its price target slightly to $150 from $158, though even at that level, it would represent a nearly 50% gain from Friday's intraday price around $102. Dell shares were down about 6% and have lost close to 12% since the start of the year.

JPMorgan analysts, who reiterated their $150 price target, said they still expect server makers like Dell to benefit from booming demand for AI infrastructure. They added a rebound in PCs and AI PCs could also provide further upside to their estimates.

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