Analyst Note| Victoria Radke |
We maintain our fair value estimate at $48 for no-moat Dell Technologies after its fourth-quarter results aligned with our top-line expectations, but fell short on those for adjusted earnings. Shares fell about 10% after hours, and we view the shares as fairly valued. Growth remained constrained by the tight supply environment, paired with an increasing backlog demand for both client and infrastructure solutions. With this, we remain cautious about long-term demand beyond near-term order fulfillment, given the initial spike in orders from COVID-19.