{"id":64281,"date":"2026-05-12T19:38:27","date_gmt":"2026-05-12T19:38:27","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/64281\/"},"modified":"2026-05-12T19:38:27","modified_gmt":"2026-05-12T19:38:27","slug":"dell-gets-downgraded-by-ubs-as-analysts-see-little-room-for-upside-following-recent-stock-run","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/64281\/","title":{"rendered":"Dell gets downgraded by UBS as analysts see little room for upside following recent stock run"},"content":{"rendered":"<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/05\/97ada2a0bb0d0a2eabb408092e42c219.jpeg\" alt=\"Dell gets downgraded by UBS as analysts see little room for upside following recent stock run\" loading=\"eager\" height=\"443\" width=\"960\" class=\"yf-lglytj  loaded\"\/> Dell gets downgraded by UBS as analysts see little room for upside following recent stock run Proactive uses images sourced from Shutterstock      <\/p>\n<p class=\"yf-1fy9kyt\"><a href=\"https:\/\/finance.yahoo.com\/quote\/DELL\" data-ylk=\"slk:Dell Technologies Inc (NASDAQ:DELL);elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Dell Technologies Inc (NASDAQ&quot;}\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">Dell Technologies Inc (NASDAQ:DELL)<\/a> shares fell 3.8% on Monday after UBS downgraded the PC and server maker to Neutral from Buy, arguing that a blistering rally has left little room for further upside even as the company capitalizes on booming artificial intelligence infrastructure demand.<\/p>\n<p class=\"yf-1fy9kyt\">Analysts raised their price target to $243 from $167 but cautioned that the stock&#8217;s risk-reward profile had grown more balanced following a roughly 170% surge over the past 12 months, or more than five times the S&amp;P 500&#8217;s gain of about 30% over the same period.<\/p>\n<p class=\"yf-1fy9kyt\">The downgrade reflects UBS&#8217;s concern that investor expectations have outrun the company&#8217;s own long-term growth targets. The bank estimates Dell will grow earnings more than 25% in fiscal 2027, driven by AI-optimized server revenue projected to rise more than 100% after climbing 152% in fiscal 2026. Dell has guided AI-related revenue to approximately $50 billion in FY27.<\/p>\n<p class=\"yf-1fy9kyt\">But UBS said market participants may already be pricing in earnings per share of around $17 for 2027, or roughly 25% above the firm&#8217;s own estimate of $12.85. That, according to analysts, implies that positive revisions to forecasts are already baked into the stock.<\/p>\n<p class=\"yf-1fy9kyt\">Analysts noted that recent legal troubles facing a rival AI server supplier could redirect orders from neocloud, enterprise, and sovereign customers toward Dell, potentially expanding the company&#8217;s order pipeline. However, they cautioned that Dell&#8217;s share price and valuation multiple have already risen about 70% since that development, while the near-term earnings benefit are\u00a0more modest.<\/p>\n<p class=\"yf-1fy9kyt\">Even if Dell captures $20 billion in incremental revenue as a result, the earnings-per-share uplift would amount to less than approximately $1.50, or about 12% above FY27 estimates, UBS noted.<\/p>\n<p class=\"yf-1fy9kyt\">Given long component lead times, analysts do not expect upside from potential share gains to materialize until calendar year 2027.<\/p>\n","protected":false},"excerpt":{"rendered":"Dell gets downgraded by UBS as analysts see little room for upside following recent stock run Proactive uses&hellip;\n","protected":false},"author":2,"featured_media":64282,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[129],"tags":[15684,225,34886,11463,35058,1079,35057,223],"class_list":{"0":"post-64281","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ubs","8":"tag-analysts","9":"tag-artificial-intelligence","10":"tag-dell","11":"tag-dell-technologies-inc","12":"tag-downgraded","13":"tag-earnings-per-share","14":"tag-server-maker","15":"tag-ubs"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116563300011913508","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/64281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=64281"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/64281\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/64282"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=64281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=64281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=64281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}