Dell Technologies (DELL) – Set to Rally on S&P 500 Inclusion
Dell Technologies (NYSE: DELL) is gearing up for a major boost as it re-enters the S&P 500 on September 23, marking its return to the benchmark index after going private in 2013. This inclusion has already caused shares to jump over 6% in premarket trading, and analysts see plenty of room for more upside. Citi Analyst Asiya Merchant recently reiterated her buy rating on the stock, with a $160 price target, implying a 57% upside from Friday’s close.
Dell’s year-to-date performance has been strong, with shares up over 33% as the company benefits from a combination of catalysts. Citi’s Merchant highlights several key drivers beyond the S&P 500 inclusion. These include an expected recovery in general infrastructure demand, a PC refresh cycle anticipated for 2025, momentum in the AI space, and robust capital returns. This well-rounded growth outlook has many analysts bullish—among the 25 analysts covering the stock, 88% have rated it a buy, with a median price target of $150, representing a 47% increase from current levels.
With Dell’s return to the S&P 500 and its strong position in several growth markets, this could be an opportune time for investors to consider adding Dell to their portfolios. The inclusion in the index alone is expected to attract inflows from passive investors, while the company’s long-term growth story remains intact.
