Dell Technologies (NASDAQ:DELL) shares are trading higher on Wednesday following positive analyst coverage from Morgan Stanley.

What Happened: Morgan Stanley analyst Erik Woodring maintained Dell with an Overweight rating and raised the price target from $128 to $152, citing accelerating momentum in Dell’s AI server and storage businesses.

Dell remains the best way to play growing AI server momentum, inflecting storage demand and an improving PC market, according to Woodring.

Morgan Stanley named Dell a top pick noting that it’s only trading at approximately 13 times the firm’s estimates for fiscal-year 2026.

“Our customer and supply chain checks suggests DELL’s AI server and storage businesses are seeing more momentum than we had previously assumed,” Woodring said in a note to clients.

The Morgan Stanley analyst also highlighted an uptick in component vendors and assembly partners orders, reflecting repeat purchase orders from Dell’s existing customer base, as well as a key competitive AI server win from Tesla, which Morgan Stanley believes could be as large as 8,000 to 10,000 AI servers this year.

“At the same time, we are seeing AI server momentum in the Enterprise as well,” Woodring added.

Morgan Stanley now forecasts EPS of just over $8 for fiscal-year 2025 and anticipates a guidance raise from Dell in the April quarter. The firm’s Street high price target of $152 implies a 15 times multiple on fiscal-year EPS of $10.12. Woodring noted that Morgan Stanley’s bull case includes a price target of $195.

Related Link: Dell To Rally Over 13%? Here Are 10 Top Analyst Forecasts For Wednesday

Dell Price Action: At the time of publication, Dell shares are up 9.24% at $146.51, according to Benzinga Pro.

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