Dell falls as Morgan Stanley downgrades to 'underweight'

Shares of cloud and client computing firm Dell Technologies DELL.N fall 6.6% to $124.95

Morgan Stanley double downgrades rating to "underweight" from "overweight"; cuts PT to $110 from $144

Brokerage says DELL is among the hardest hit by rising memory chips costs in the original equipment manufacturers' (OEMs) coverage

Brokerage says Dell and HP HPQ.N are "most vulnerable" given high dynamic random access memory exposure and thinner margins

HP shares down 4.0% at $23.55

Brokerage reduces Dell's FY27 gross/operating margins by ~150 basis points to ~220 basis points and EPS by ~12% due to challenges from rising costs of memory chips

Up to last close, Dell had risen ~16% and HP had fallen 25% this year