Dell Fined By Australian Court For Misleading Customers: Report
Portfolio Pulse from Lekha Gupta
Dell Technologies Inc has been fined A$10 million ($6.46 million) by Australia's Federal Court for misleading customers about discounts for add-on computer monitors on its website. Between August 2019 and December 2021, Dell Australia sold over 5,300 monitors with overstated discounts. Despite this, Morgan Stanley raised its bull case valuation on the stock from $81 to $84, focusing on Dell's leveraging of generative AI technology.
August 14, 2023 | 10:28 am
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Dell has been fined for misleading customers in Australia, but Morgan Stanley has raised its valuation of the company's stock.
The fine could negatively impact Dell's reputation and finances, but the raised valuation by Morgan Stanley indicates confidence in the company's future performance, particularly in relation to its AI technology. This could balance out any short-term negative impact on the stock price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100