Dell Technologies (DELL) could navigate through the impact of higher memory chip costs, BofA Securities said in a Thursday report after quantifying the memory impact on original equipment manufacturers by customer elasticity.

"We expect Dell to navigate well through memory headwinds," the report said.

NAND and DRAM pricing is forecast to increase 140% and 14%, respectively, in 2026, the report said. It said the OEMS will use a mix of price boosts, product reconfigurations, and pressure on suppliers in order to counter the resulting cost pressures.

Following the analysis, BofA kept its buy rating on Dell while lowering its price target to $150 from $163 on incremental margin & EPS pressure.

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