Shares of Dell Technologies Inc (NYSE:DELL) spiked in early trading on Friday, after the company reported its fiscal second-quarter (Q2) results.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

• Raymond James analyst Simon Leopold maintained an Outperform rating, while raising the price target from $50 to $68.
• Morgan Stanley analyst Erik Woodring reiterated an Overweight rating, while lifting the price target from $56 to $70.
• Evercore analyst Amit Daryanani reaffirmed an Outperform rating, while raising the price target from $60 to $70.
• Morgan Stanley analyst Asiya Merchant maintained a Buy rating on the stock.

Check out other analyst stock ratings.

Raymond James: Dell delivered a beat-and-raise quarter. “Upside was balanced across the segments,” Leopold said in a note.

“Although we suspect Dell had de-risked its FY2024 outlook, we had not envisioned this much upside potential,” the analyst wrote. The company’s AI assertions are “gaining credibility,” with 20% of year-to-date server orders being for AI-enabled servers.

Morgan Stanley: “DELL saw demand improve faster than they expected in the quarter,” Woodring wrote in a note.
“With signs of hardware spend stabilizing, AI server emerging as a driver of revenue/profit upside, stepped-up capital return commitments and S&P inclusion still ahead of us, and solid execution/cost mgmt driving profitability upside, we are moving DELL to our Top IT Hardware Pick,” he added.

Evercore: Dell Technologies delivered “impressive” upside to revenues and earnings, with board-based strength “across both infrastructure and client segments,” Daryanani said. “Better mix coupled with disciplined OPEX control enabled a sizable operating margin and EPS upside,” he added.

“Dell’s October guide bakes in a sub-seasonal flattish sequential outlook despite other hardware peers guiding for sequential growth, reflecting more conservative stance as enterprise spending continues to lag and more price/margin pressure are expected ahead,” the analyst added.

DELL Price Action: Shares of Dell Technologies had risen by 22.78% to $69.05 at the time of publication Friday.

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