New Forecasts: Here's What Analysts Think The Future Holds For Dell Technologies Inc. (NYSE:DELL)
Celebrations may be in order for Dell Technologies Inc. (NYSE:DELL) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
Following the upgrade, the current consensus from Dell Technologies' 26 analysts is for revenues of US$194b in 2027 which - if met - would reflect a sizeable 45% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 90% to US$24.69. Previously, the analysts had been modelling revenues of US$173b and earnings per share (EPS) of US$17.22 in 2027. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
Check out our latest analysis for Dell Technologies
With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.4% to US$542 per share.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Dell Technologies' growth to accelerate, with the forecast 109% annualised growth to the end of 2027 ranking favourably alongside historical growth of 3.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Dell Technologies is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Dell Technologies could be worth investigating further.
Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Dell Technologies that suggests the company could be somewhat undervalued. For more information, you can click through to our platform to learn more about our valuation approach.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.