There is a buying opportunity in Dell Technologies and investors should take advantage of it, according to Citi. Analyst Asiya Merchant initiated coverage on Dell with a buy rating and a $60 price target, citing the technology company’s leadership in a category that is “poised for recovery.” The analyst cited signs of an early recovery in commercial computing, although recovery in storage and computing remains uncertain. “We like Dell’s leadership in commercial PCs, the return to normalized FCF margins, which could lead to increased shareholder returns, reduced core debt leverage, along with the potential for inclusion in the SP500 as an accretive catalyst,” Merchant told clients on Thursday note. “Estimates have also been significantly de-risked given conservative guidance.” DELL 1D mountain Dell stock Dell’s one-day stock is up 32% this year. The stock outperformed in a challenging market with tech hardware names under pressure after their surge during the Covid-19 pandemic. However, the analyst’s $60 target suggests the stock could rise another 12.9% from Thursday’s closing price. “Given the significant correlation between stock price performance and EPS estimate revisions, we remain selectively biased toward those companies that 1) are strongly positioned toward those areas poised for a recovery, 2) margin expansions have allowed for a mixed shift, and 3) de-risked estimates, ” the trader wrote. — CNBC’s Michael Bloom contributed to this report.