Dell (DELL) Shares Drop Amid Tariff Concerns

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Apr 03, 2025
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  • Stock Decline: Dell Technologies (DELL, Financial) faces a significant 17% drop in stock price due to new U.S. tariffs.
  • Analyst Predictions: Analysts provide a bullish average price target of $138.82, suggesting considerable potential growth.
  • Valuation Challenges: GuruFocus estimates indicate the current market price exceeds the GF Value by 2.35%, highlighting valuation concerns.

Dell Technologies (DELL) recently experienced a substantial 17% decline in its stock price, settling at $79.4. This drop is largely attributed to the impact of newly imposed U.S. tariffs targeting imports. The increased tariffs could elevate costs for Dell's international supply chains, potentially squeezing margins and profits. In response, Dell may consider adjusting its pricing strategy by increasing prices to offset the higher expenses. Additionally, the tech giant is exploring strategic partnerships in the rapidly evolving AI sector.

Wall Street Analysts Forecast

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Wall Street remains optimistic about Dell Technologies' future. According to projections from 20 financial analysts, the average price target for Dell Technologies Inc (DELL, Financial) stands at $138.82, with forecasts ranging from a high of $185.00 to a low of $105.00. This average target suggests a potential upside of 76.33% from the current trading price of $78.73. Investors seeking more granular data on these projections can visit the Dell Technologies Inc (DELL) Forecast page.

Additionally, Dell Technologies enjoys an "Outperform" status based on the consensus recommendation from 24 brokerage firms, averaging a rating of 2.0. This rating is part of a 1 to 5 scale, where 1 indicates a Strong Buy and 5 signals Sell.

However, GuruFocus's proprietary GF Value assessment provides a more cautious outlook. Dell Technologies Inc's estimated GF Value in one year is $76.88, which reflects a potential downside of 2.35% from its current market value of $78.73. The GuruFocus GF Value represents the fair value that the stock should ideally trade at, determined by the historical trading multiples, past growth, and future business performance estimates. For more detailed insights, investors are encouraged to visit the Dell Technologies Inc (DELL, Financial) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.