Barclays Maintains an 'Equalweight' on Dell (DELL); Meeting with CFO Highlights Support from Margins, Buyback
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Price: $124.91 +3.92%
Rating Summary:
22 Buy, 14 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
22 Buy, 14 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Barclays maintains an 'Equalweight' on Dell (NASDAQ: DELL) price target of $16.00.
Barclays analyst says, "We just hosted a lunch meeting with Dell CFO Brian Gladden in Boston. Key topics discussed include the prospects to grow profits long-term given current margin dynamics, Dell's transition to an enterprise solutions company, the potential positive impact of uncertainty at HP, and the company's cash-usage strategy including share repurchases and acquisitions. The key takeaway of the meeting is that Dell remains confident in its ability to grow revenue in the single digits long-term and gain share (especially in PCs given the current dislocation), while sustaining gross margins as mix shifts toward enterprise solutions."
"Near-term, we believe Dell is facing a challenging economic environment, which could lend downside to current quarter revenues. That said, given dislocation at HP (NYSE: HPQ), favorable component prices, an accelerated buyback and an extra week for the January quarter, Dell may have less EPS downside vs. consensus into 2012 than other PC-related companies in our coverage universe. Long-term we are still concerned that Dell may not be able to grow EBIT next year - but short-term, downside may be limited."
For more ratings news on Dell click here and for the rating history of Dell click here.
Shares of Dell closed at $15.38 yesterday.
Barclays analyst says, "We just hosted a lunch meeting with Dell CFO Brian Gladden in Boston. Key topics discussed include the prospects to grow profits long-term given current margin dynamics, Dell's transition to an enterprise solutions company, the potential positive impact of uncertainty at HP, and the company's cash-usage strategy including share repurchases and acquisitions. The key takeaway of the meeting is that Dell remains confident in its ability to grow revenue in the single digits long-term and gain share (especially in PCs given the current dislocation), while sustaining gross margins as mix shifts toward enterprise solutions."
"Near-term, we believe Dell is facing a challenging economic environment, which could lend downside to current quarter revenues. That said, given dislocation at HP (NYSE: HPQ), favorable component prices, an accelerated buyback and an extra week for the January quarter, Dell may have less EPS downside vs. consensus into 2012 than other PC-related companies in our coverage universe. Long-term we are still concerned that Dell may not be able to grow EBIT next year - but short-term, downside may be limited."
For more ratings news on Dell click here and for the rating history of Dell click here.
Shares of Dell closed at $15.38 yesterday.
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