• Product
  • Web Stories
  • About Us
  • Today headline
  • Write for us
  • Contact Us
Today Headline
No Result
View All Result
  • breaking news today
    • Politics news
    • Sports
    • Science News & Society
  • Entertainment News
    • Movie
    • Gaming
  • Technology News
    • Automotive
    • Software & IT
  • Gear
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us
  • breaking news today
    • Politics news
    • Sports
    • Science News & Society
  • Entertainment News
    • Movie
    • Gaming
  • Technology News
    • Automotive
    • Software & IT
  • Gear
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us
No Result
View All Result
TodayHeadline
No Result
View All Result

Dell rises to record high after analyst calls stock ‘compellingly inexpensive’

Gilberto V. Sutton by Gilberto V. Sutton
in Parenting
Reading Time: 2 mins read
0 0
A A
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter


Dell Technologies Inc. shares closed at a record high Monday after being dubbed “compellingly inexpensive” by an analyst.

Bernstein analyst Toni Sacconaghi upgraded Dell
DELL,
+3.26%
stock to outperform from market perform Monday, boosting his target price to $72 from $63 and writing of several potential catalysts for the maker of personal computers. Shares gained 3.3% in the session to close at $59.88, nearly a dollar higher than the previous record close, which was $58.91 on Dec. 7, 2021.

While Sacconaghi sees general signs of a slowdown in Chromebooks, he notes that Dell has a better business mix than some of its rivals in the personal-computer segment. The company is less exposed to Chromebooks and gets roughly 75% of its revenue from corporate business, by his estimation, whereas he pegs the broader industry’s mix at closer to 50%.

Dell also has three “structural advantages” over many of its rivals, in Sacconaghi’s view, including its “broader solution set” that allows for better cross-selling. Further, the company’s scale allows for “greater purchasing heft,” and its distribution model affords more flexibility to tweak pricing.

Sacconaghi sees potential in Dell’s storage business, which has been “relatively flat” in recent quarters but could capitalize on “an elevated backlog and a mainframe cycle.” This part of the business is of key interest to investors, he noted, given that it accounts for roughly 16% of revenue but about 30% of profit.

He calculates that Dell has approximately $6 billion to $8 billion in excess cash, which the company could use for a “more aggressive” approach to paying down debt or buying back shares. Doing so could boost the company’s fiscal 2023 earnings per share by an additional $1, per his math.

Then there’s the possibility that Dell could do away with its supervoting share class. While he notes that Chief Executive Michael Dell shared at a Bernstein conference that the company had no plans to eliminate the supervoting shares, Sacconaghi still sees it as a possibility—and argues that such a change could win Dell’s stock more favor with investors and index providers.

“It is possible that some investors might put a discount on Dell due to the company’s dual-class share structure, which gives Michael Dell majority voting power and excludes Dell from being included in major indexes,” he wrote.

Dell stock has gained 53.3% in the past year, as the S&P 500 index
SPX,
-0.14%
has gained 22.3%.

Share this:

  • Tweet
  • Reddit
  • Telegram
  • More
  • Pocket
  • Email
  • WhatsApp
  • Mastodon
  • Nextdoor
ShareTweet
Gilberto V. Sutton

Gilberto V. Sutton

  • Trending
  • Comments
  • Latest

Christmas Cactus VS Easter Cactus: What Is The Difference?

Here Are The Best Early Video Reviews Of The Tesla Cybertruck So Far

Nov. 26 – Dec. 2 – Cointelegraph Magazine

Illegal ‘weight loss pens’ are being given away for FREE on social media: Alert over fake ‘Ozempic’ jabs that have left Brits in comas

Warning over ‘nature’s own Ozempic’: Experts alarmed by viral TikTok weight loss drug

Scientists Were Wrong – Tiny Crystals Reveal That the Moon Is Millions of Years Older Than Previously Thought

Weather warning issued for ice overnight in Shropshire

BBC should be 'realistic' on licence fee - Sunak

BBC should be 'realistic' on licence fee – Sunak

Bitcoin tops $40,000 for first time since May 2022

Dune Part Two Star Florence Pugh Hit in Face by Flying Object at CCXP – The Hollywood Reporter

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

Scientists Were Wrong – Tiny Crystals Reveal That the Moon Is Millions of Years Older Than Previously Thought

Weather warning issued for ice overnight in Shropshire

BBC should be 'realistic' on licence fee - Sunak

BBC should be 'realistic' on licence fee – Sunak

Scientists Were Wrong – Tiny Crystals Reveal That the Moon Is Millions of Years Older Than Previously Thought

Weather warning issued for ice overnight in Shropshire

BBC should be 'realistic' on licence fee - Sunak

BBC should be 'realistic' on licence fee – Sunak

  • Real Estate
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Web Stories
  • Privacy & Policy
  • Contact
  • About

© 2023 All rights are reserved Today headline

No Result
View All Result
  • breaking news today
    • Politics news
    • Sports
    • Science News & Society
  • Entertainment News
    • Movie
    • Gaming
  • Technology News
    • Automotive
    • Software & IT
  • Gear
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us

© 2023 All rights are reserved Today headline

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In