Selected stock price target news of the day - September 05, 2023

By: Matthew Otto

Dell Technologies Outlook Ignite Investor Enthusiasm

Dell Technologies latest earnings report, not only exceeded expectations but also provided optimistic guidance for the future. Investors are not only excited about the rebound in PC demand, but they also see a multitude of other positive factors.

Evercore’s Amit Daryanani highlighted some of these catalysts, such as the potential for a capital allocation update during Dell’s upcoming analyst day, the acceleration of AI-centric revenue, and the prospect of S&P 500 inclusion. Evercore maintains a positive outlook on the stock with a $70 target price and an Outperform rating.

UBS analyst David Vogt has also raised his price target for Dell from $57 to $69 while retaining a Buy rating. Vogt anticipates that Dell will announce a more aggressive capital return policy during its analyst day in October.

Moreover, Citi analyst Asiya Merchant points out the potential upside of AI-generated demand for Dell, especially in building servers used for generative AI applications. Despite the longer lead times for AI-related orders, Merchant maintains a $70 target price on Dell stock, along with a Buy rating. Investors are also closely watching the possibility of Dell’s inclusion in the S&P 500 index, as S&P Dow Jones Indices’ recent policy change could open the door for the company to join this influential index.

Analysts Raise Price Targets Across the Board

UBS analyst David Vogt maintained a Buy rating and raised the price target from $57 to $69.
Evercore ISI Group analyst Amit Daryanani reiterated an Outperform rating and increased the price target from $60 to $70.
Morgan Stanley analyst Erik Woodring maintained an Overweight rating and upgraded the price target from $56 to $70.
Barclays analyst Tim Long kept an Equal-Weight rating and raised the price target from $45 to $53.
Wells Fargo analyst Aaron Rakers reiterated an Overweight rating and adjusted the price target from $65 to $75.

Analyst Aaron Rakers (WELLS FARGO) currently has the highest performing score on DELL with 11/12 (91.67%) price target fulfillment ratio. His price targets carry an average of $9.25 (27.08%) potential upside. Dell Technologies stock price reaches these price targets on average within 274 days.

Nutanix Delivers Q4 Results and Raises Full-Year Guidance

Nutanix has caught the attention of investors with its fourth-quarter financial performance and optimistic full-year outlook. The cloud computing company reported earnings of 24 cents per share for Q4, exceeding analyst expectations by a wide margin. Moreover, Nutanix’s revenue for the quarter stood at $494.2 million, surpassing estimates of $475.2 million. The company’s free cash flow of $45.4 million, when compared to the anticipated loss of $24.6 million, underscores its financial resilience. As a result, Nutanix raised its full-year revenue guidance to a range of $2.09 billion to $2.12 billion.

Following the quarterly results, analysts are showing renewed enthusiasm for Nutanix stock. RBC Capital Markets analyst Matthew Hedberg raised the price target on Nutanix shares from $38 to $43, maintaining an Outperform rating. Hedberg lauded Nutanix’s execution and cited strong performance in annual contract value (ACV) billings/revenue and free cash flow generation. Similarly, KeyBanc Capital Markets analyst Thomas Blakey increased the price target to $45 from $35, maintaining an Overweight rating. Blakey emphasized Nutanix’s strong renewals during Q4 and the signing of substantial multi-million-dollar deals, even in a challenging macroeconomic environment, showcasing the company’s value proposition.

Analysts Boost Price Targets as Bullish Sentiment Grows

Piper Sandler analyst James Fish maintained an Overweight rating and raised the price target from $35 to $40.
Northland Capital Markets analyst Nehal Chokshi reiterated an Outperform rating and increased the price target from $39 to $45.
Morgan Stanley analyst Meta Marshall kept an Equal-Weight rating and raised the price target from $32 to $36.
RBC Capital analyst Matthew Hedberg maintained an Outperform rating and upgraded the price target from $38 to $43.
Barclays analyst Tim Long kept an Overweight rating and raised the price target from $38 to $43.

Analyst Tim Long (BARCLAYS) currently has the highest performing score on NTNX with 4/6 (66.67%) price target fulfillment ratio. His price targets carry an average of $4.31 (18.23%) potential upside. Nutanix stock price reaches these price targets on average within 27 days.

Alibaba’s Cloud Division Pursues Multi-Billion Dollar Private Funding

Alibaba Group Holding cloud division, Cloud Intelligence, is actively exploring a significant private fundraising effort to fortify its position ahead of its impending market debut in Hong Kong. The technology conglomerate is collaborating closely with financial advisors to assess the potential for securing a formidable sum, potentially ranging between $1.38-$2.75 billion. Notably, these funds are crucial to further enhance the cloud division’s capacity to compete in the rapidly expanding cloud computing market.

This development follows a series of strategic moves by Alibaba as it adapts to a shifting regulatory landscape and seeks to unlock the potential of its various divisions. The company recently unveiled its restructuring plan, encompassing six distinct business units, and approved the full spinoff of the Cloud Intelligence Group. The spotlight on Alibaba’s cloud expansion coincides with its financial affiliate, Ant Group, which initiated an unexpected share buyback in July. The buyback, valuing Ant Group at $78.54 billion, marks a shift from the $315 billion valuation that was initially projected for its abandoned 2020 public listing.

Analysts Maintain Positive Outlook for Alibaba Group Holding

Susquehanna analyst Shyam Patil has reiterated a Positive rating a price target of $160.

Analyst Youssef Squali (TRUIST) currently has the highest performing score on BABA with 30/48 (62.5%) price target fulfillment ratio. His price targets carry an average of $40.71 (27.63%) potential upside. Alibaba Group Holding stock price reaches these price targets on average within 229 days.