Dell (DELL) has executed well in difficult circumstances, leveraging strong supply chain execution to at least partially offset component shortages and continuing to build up its hyperconverged and midrange storage businesses. Of course, there’s also the upcoming VMware (VMW) spinoff, a deal that will allow for meaningful deleveraging, a better credit rating, and returns of capital to shareholders.
That’s all good, and I do think Dell shares still have upside, but I do think management needs to also get the Street focused on the post-VMware story. Strong execution is all well and good, but in the short attention span theater that is Wall Street, analysts and investors often need “hooks”, and I would hope that management delivers something more than just a post-spin execution story at its upcoming Analyst Day.
Read the full article at Seeking Alpha:
Dell Will Need A New Story Soon, But The Valuation Still Holds Some Appeal
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