Dell Technologies: Buy The Dip Before The Next Refresh Cycle
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Dell Technologies is facing potential near-term challenges with revised EPS estimates, but has multiple growth catalysts for eFY25, including AI server growth and PC sales. The company aims for 3-4% annual revenue growth and plans to return over 80% of adjusted free cash flow to shareholders.
January 16, 2025 | 8:30 pm
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Dell Technologies is experiencing potential near-term challenges with EPS estimates revised down 19 times in 90 days. However, growth catalysts like AI server expansion and PC sales are expected to drive future growth. Dell plans to return over 80% of adjusted free cash flow to shareholders.
Despite the downward revision of EPS estimates, Dell has several growth catalysts such as AI server growth and PC sales. The company's commitment to returning a significant portion of free cash flow to shareholders through dividends and buybacks is a positive sign for investors. However, the near-term challenges create a neutral short-term outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100