Overview
- Morgan Stanley cut Dell to Underweight from Overweight and lowered its price target to $110 from $144 in a late-Sunday note.
- Dell shares fell more than 5% premarket and were down over 7% intraday on Monday following the downgrade.
- The call cites surging DRAM and NAND prices as a multi-quarter headwind, with added concern over Dell’s AI server mix and sensitivity to memory costs.
- Morgan Stanley trimmed its FY2027 projections, cutting gross margin by 150–220 basis points and reducing the EPS outlook by roughly 12%.
- Rival firms struck a more upbeat tone as JPMorgan put Dell on positive catalyst watch and raised its target to $170, with Evercore ISI at $180 and Raymond James at $161, while investors look to the Nov. 25 earnings report as the next catalyst.